Ahead of the Verdantix Climate Summit North America, we sat down with Director of Sustainability at beauty and wellness firm Nu Skin, Jeff Sokol, to gain an inside perspective on climate strategies and reporting.
Who are you and what are your main responsibilities?
I’m Jeff: I am a dad, a mountain biker and the Director of Sustainability at Nu Skin, a global beauty and wellness firm. I oversee all aspects of sustainability, from its carbon footprint to improving product environmental and social impact.
Why are climate reporting and disclosures important – and who should be concerned by them?
Climate reporting and disclosures drive a cycle of reduction. Measurement sets a bar against which to benchmark impact. It also allows for resources to be allocated to the areas where investments can make the most difference. Disclosure begins to address the negative externality of climate change. Governments and NGOs have traditionally been the most concerned, however a broader coalition of stakeholders are now asking for climate disclosure and action. Investors are attempting to assess physical and transition risk, prospective employees are deciding where to work, and customers are looking for products that they can feel good about consuming.
What is the most challenging aspect of deciding on a climate strategy?
It feels easy to make an announcement that we will ‘reduce carbon by 30%’ or ‘be net zero’ by a certain date – the challenge is what comes next. How can we achieve the reductions in a meaningful way? How do we offset growth? Where will the budget come from when margins are being compressed by inflation? It is important to find alignment with the corporate purpose and to look for ways that can deliver business value by aligning with the enterprise’s strategy while seeking meaningful impact.
Data informs a climate strategy. How are you managing the collection of climate data?
Timely and accurate data collection is my biggest concern as disclosure moves from voluntary to mandatory. As we collect utility and usage data from sites across the globe, we are attempting to integrate the collection of usage data with our accounts payable system. We are not there yet, and for auditability are still collecting invoices separately. Emission factors are an area of concern for me, which many of the software providers gloss over. The quality and accuracy of emissions factors for electricity providers feels like a real weak link.
What are you looking forward to most about the Climate Summit 2024, and can you tell us a little bit about what you will be speaking about?
I am excited to see how other sustainability practitioners are addressing their climate related challenges. I always come away from events like the Climate Summit with a stronger network and a stronger resolve to keep striving to make an impact.
The session I will be speaking during focuses on applying audit and assurance to climate and ESG data. The new regulations in the EU and California will require more organizations to seek third party assurance. I will be sharing how to work with your internal audit team to prepare for this level of scrutiny, as you develop robust and repeatable procedures.
To hear more from Jeff Sokol, register to attend Climate Summit North America on the 20th and 21st February.
