Pollution Data: Who's Responsible?

The release of pollution data by companies is a highly relevant topic for any company that makes products from raw materials, as all such companies use chemicals directly or indirectly. While pollution data is critical to efforts to reduce pollution and its associated public health risks, significant gaps exist in the primary data used to quantify emissions. Companies are scrambling to find out what pollution-specific data they currently hold and are becoming aware of major gaps. This is especially true for companies in industry sectors such as chemicals, manufacturing, oil and gas, pharma, tech, metals, mining, and consumer products.

Pollution disclosure requirements

The new pollution disclosure requirements are relevant for any company that makes products from raw materials. These companies use chemicals directly, indirectly, or both, even though many may mistakenly believe they don't. The EU's Corporate Sustainability Reporting Directive (CSRD) requires companies to analyse a range of sustainability issues and relate them to financial opportunities and risks, as well as an organisation's impact on society and the environment. The key objective of the CSRD is to provide reliable and comparable sustainability data from companies on the impact of their operations on people and the environment. This allows investors, customers, and stakeholders to benchmark companies and factor that into their buying and investment decisions.

The CSRD's Pollution (E2) reporting requirements cover companies across a broad range of industry sectors, including chemicals, manufacturing, oil and gas, pharmaceuticals, technology, metals, mining, and consumer products. Companies are scrambling to find out what pollution-specific data and policies they currently hold and are becoming aware of major gaps. Without a carefully prioritised and phased-in implementation plan to bridge data and information gaps, E2 disclosures could be founded on limited and poor-quality data. This could result in adverse reputational, competitive, and financial consequences, given that customers and investors are likely to bias their decisions towards companies with better pollution footprints.

The undertaking shall disclose its pollution-related actions and the resources allocated to their implementation. The description of the pollution-related action plans and resources shall contain the information prescribed in ESRS 2 MDR-A Actions and resources in relation to material sustainability matters. The undertaking shall specify as part of the contextual information whether the targets that it has set and presented are mandatory or voluntary. The undertaking shall disclose the pollutants that it emits through its operations, as well as the microplastics it generates or uses.

E2 requires disclosures not just of pollution data but also of policies, actions, and targets aimed at reducing and minimising the use and emissions of these substances of concern and pollutants, in line with the Zero Pollution Action Plan. The disclosure required by paragraph 32 shall include the total amounts of substances of concern that are generated or used during the production or that are procured, and the total amounts of substances of concern that leave its facilities as emissions, as products, or as part of products or services.

Sustainability data

The emergence of the term "pollution data" reflects the modern emphasis on quantifiable evidence in environmental management and policymaking. The increasing availability of data has also revealed the complexity and interconnectedness of environmental issues, necessitating more advanced analytical methods and interdisciplinary collaboration.

Companies across various sectors, including chemicals, manufacturing, oil and gas, pharmaceuticals, technology, metals, mining, and consumer products, are facing new challenges due to the stringent pollution disclosure requirements. The Corporate Sustainability Reporting Directive (CSRD) mandates companies to disclose their social and environmental impact, including chemical pollutant emissions. However, many companies lack the necessary data and face significant gaps in their pollution-specific information.

To address these challenges, companies must invest in bridging data gaps and improving data quality. Well-designed sampling and analysis programs are essential but may seem cost-prohibitive. Nonetheless, companies with better pollution footprints are more likely to attract customers and investors, making sustainability data a competitive advantage.

Environmental permit compliance

Environmental permitting is a discipline that involves obtaining the required permissions from local, state, and federal agencies and ensuring compliance with environmental regulations. An Environmental Permitting Specialist works with the Army Corps of Engineers (ACOE) to ensure that projects comply with the most current regulations. The ACOE has jurisdiction over activities that impact the navigable waters of the United States, and its involvement can trigger compliance with the National Environmental Policy Act (NEPA). The Environmental Protection Agency (EPA) also plays a significant role in environmental regulation, particularly in areas requiring compliance with the Clean Air Act.

Companies across various industry sectors, including chemicals, manufacturing, oil and gas, pharmaceuticals, technology, metals, mining, and consumer products, are facing challenges in meeting the new pollution disclosure requirements. The objective of these disclosures is to provide reliable and comparable sustainability data on the impact of company operations on the environment and people. However, many companies lack the necessary data on chemical pollutant emissions and their effects.

To ensure environmental permit compliance, companies can seek assistance from environmental professionals or specialists. These experts can help determine applicable requirements, devise compliance strategies, and negotiate permit terms with regulators. They can also guide clients through the permitting process, manage environmental compliance costs, and provide worker education programs. Well-designed sampling and analysis programs are critical to bridging data gaps and providing confidence in data quality.

Additionally, it is important to stay updated with changing environmental regulations. Environmental permitting specialists can help streamline the permitting process, saving time and resources for clients. They research past regulatory activity, review projects for potential impacts on natural and cultural resources, and coordinate with regulatory agencies, developers, and design teams.

Pollution monitoring and disclosure

In the United States, the Environmental Protection Agency (EPA) plays a pivotal role in managing outdoor air quality data. The EPA utilizes two primary IT systems, the Air Quality System (AQS) and AirNow, to collect and disseminate information on outdoor air quality. These systems aid in identifying areas that fall short of air quality standards and help communicate pollution levels to the public. However, the aging infrastructure of these systems has presented maintenance and usability challenges for the EPA.

Federal regulations in the US also require states, and sometimes counties or cities, to collect air emissions data from large municipal, commercial, or industrial facilities. This data is compiled into annual state emission inventories, which are made available to the public. These inventories are essential for evaluating compliance with the Clean Air Act, understanding local air pollution, and developing informed pollution laws and planning activities.

The introduction of new pollution disclosure requirements, such as those mandated by the CSRD, has caught many companies off-guard. These requirements demand that companies disclose reliable and comparable sustainability data regarding the impact of their operations on the environment and society. This includes information on chemical pollutant emissions, policies, actions, and targets aimed at reducing and minimizing the use of substances of concern.

Companies across various sectors, including chemicals, manufacturing, oil and gas, pharmaceuticals, technology, metals, mining, and consumer products, are facing the challenge of bridging significant data gaps to meet these new disclosure requirements. The consequences of incorrect or incomplete disclosures can be severe, impacting a company's reputation and financial standing as investors, customers, and consumers become increasingly conscious of environmental sustainability.

To address these challenges, companies must prioritize the collection of pollution-specific data and develop phased implementation plans to ensure the accuracy and completeness of their disclosures. Additionally, innovative technologies, such as air quality IoT systems and sensor-equipped urban features, offer promising solutions for real-time pollution monitoring and data generation.

Data quality and certainty

The quality and certainty of data are essential for effective pollution disclosure and management. However, companies often face significant challenges in obtaining and providing accurate and complete pollution data.

Firstly, there are substantial data gaps in the necessary primary data used to quantify emissions and the presence of substances in raw materials and products. This is partly due to the complex and diverse nature of chemicals and pollutants, such as PFAS and microplastics, which are not yet well-defined or understood across industries. As a result, companies may struggle to accurately monitor or estimate their emissions and impact on the environment.

Secondly, even when data is available, uncertainty in estimates can create a lack of confidence in the datasets. This uncertainty can lead to hesitation from responsible individuals or entities, such as CFOs, to sign off on the data, especially when financial decisions are involved.

To address these issues, well-designed sampling and analysis programs are crucial. However, implementing such programs may seem cost-prohibitive, especially for companies with restricted operations budgets. Therefore, a balanced approach is necessary, considering both the risks and costs involved in bridging data gaps while ensuring data quality and certainty.

Additionally, companies must act proactively to fill data and information gaps. Without a phased-in implementation plan, disclosures may be based on limited or poor-quality data, leading to adverse reputational, competitive, and financial consequences. With customers and investors increasingly considering a company's pollution footprint in their decisions, the impact of inaccurate or incomplete data can be significant.

In summary, ensuring data quality and certainty is vital for reliable pollution disclosures. Companies must invest in data collection and analysis, address data gaps, and prioritize accurate and transparent pollution reporting to maintain the confidence of investors, customers, and the public.

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