Finance

ESG Reporting: How Finance Professionals are Looking Ahead

Published

2 years ago

May 19, 2022

ESG Reporting: How Finance Professionals are Looking Ahead

©gesrey/iStock/Getty Photographs Plus

Given the elevated regulatory consideration and the diploma to which finance professionals are being relied on to assist elevated ESG reporting efforts, the Monetary Training & Analysis Basis of Monetary Executives Worldwide collaborated with Ernst & Younger LLP (EY US) to conduct analysis designed to uncover:

The extent that members of the finance operate have devoted time and sources to deal with ESG reporting

The robustness of formalized insurance policies and procedures

The roles and tasks of key people within the group

The commonest ESG metrics which can be reported and the timing and method through which the information is collected

This text incorporates key excerpts from the analysis and highlights how finance professionals are interacting with ESG reporting proper now and the way they’re addressing key management issues for ESG reporting.

Finance professionals and ESG

“We personal our involvement in [ESG reporting] now and shifting ahead,” explains one controller. She continues, “However as we consider what the way forward for this actually appears like, and as we set up extra outlined roles and tasks, [our involvement] will proceed to evolve.”

As anticipated, the Securities and Trade Fee launched its proposed rule – The Enhancement and Standardization of Local weather-Associated Disclosures for Traders – again on March 21^st. Because the proposal gives better readability on potential future reporting necessities, monetary leaders, such because the one quoted above, are actually figuring out what their involvement within the course of will seem like shifting ahead.

Within the meantime, some finance professionals are within the technique of discovering the place the scope of finance operate begins and ends because it pertains to involvement with ESG reporting. Furthermore, a number of interviewees are actually within the technique of leveraging their skillsets in monetary reporting within the ESG reporting house. As one finance skilled famous, “Clearly, the chief accountants and the controllers of the world weren’t constructed to be local weather specialists or perceive every little thing about human capital metrics.” He continued, “The place we will help is by arising with controls and constructing processes to collect that knowledge — we all know how to do this type of stuff as a result of we already do it for [financial] numbers.”

How finance professionals are approaching ESG controls proper now

“We’ve got began to ask about documentation, and lots of people reply, ‘Nicely, we most likely have a couple of emails,’” remarked one finance skilled. Based mostly on the interviews, the documentation underpinning publicly disclosed ESG data is commonly advert hoc and inconsistent, in distinction to monetary knowledge. To convey the documentation into better alignment with reported monetary knowledge, finance professionals are working with knowledge house owners, knowledge collectors and features that personal sustainability reporting to assist create formal documentation that addresses accumulate, retailer, collate, analyze and, finally, report on the varied ESG metrics. One controller described her controllership’s expertise in working to know and map the ESG-related knowledge saying, “Previous to getting concerned, we have been like loads of firms. The information, the information assortment and the information evaluation are carried out by the sustainability group, or the power group, or HR, or any variety of different features that personal the information.” Her staff’s work to map the circulation of information by means of the method helped them present perceive the method and flows of information, enabling them to work with knowledge and course of house owners to make enhancements delivering elevated accuracy and effectivity. One other interviewee is specializing in guaranteeing that her group’s course of is resilient and adaptable from the human perspective; for her, this implies adequately documenting every activity being carried out, why it’s carried out, and the way it’s carried out.

One other interviewee remarked that, no matter any rules, and earlier than many stakeholders began paying far more consideration to publicly disclosed ESG data, her group needed the consolation of understanding it had strong documentation in place. She additionally remarked that documenting the present processes has helped to establish gaps of their management framework. Since many metrics disclosed will be tough to measure and may depend on exterior inputs or important judgments and estimation, finance professionals are taking a look at documentation to elucidate how sure measurements and metrics have been derived.

Fascinated with Scope 3 Emissions

One finance skilled pointed to documentation of Scope 3 emissions as an space to which their firm is devoting loads of time, consideration and sources – as presently there’s a dearth of definitive steering on this matter. Furthermore, the inclusion of Scope 3 emissions within the SEC’s proposal is including significance to the determinations described by the finance skilled within the previous sentence.

Whereas massive accelerated filers received’t need to report on Scope 3 emissions till 2025 and accelerated and non-accelerated filers till 2026, firms are rapidly having to think about collect knowledge from throughout the worth chain. Furthermore, some firms are starting to plan for a way they’ll method reporting on their Scope 3 emissions with the understanding that some suppliers are and can have the ability to present the information and others won’t; one skilled famous that their firm would most likely have to check those who do present knowledge after which make estimates for these that don’t primarily based on the opposite suppliers.

Transferring ahead

For now, we’re seeing approaches to ESG reporting and finance’s involvement therein taking myriad shapes. In reality, we’re seeing a range of approaches as quite a few because the variety of firms reporting on such data. One salient instance is expertise: a finance skilled mentioned that her staff has lately begun the method for hiring an ESG inside controls place; different interviewees indicated that their organizations have been contemplating different ESG-finance hybrid roles.

Whereas the SEC’s proposals aren’t last (the remark interval was lately prolonged till June 17) elevated ESG integration into finance and vice-versa represents one other facet of how finance professionals are being requested to evolve. As with all elements of their roles, finance professionals are bringing a dedication to high quality, consistency, and energy to supporting ESG reporting.

To be taught extra, obtain the complete report, How Finance Professionals Are Serving to to Advance ESG Reporting.

Finance

Trends in residential solar finance, equipment and maintenance

Published

27 mins ago

May 20, 2024

Press Room

Solar informational site SolarReviews released its annual survey, sharing results gathered from a group mostly represented by residential solar installers, as well as commercial installers, equipment providers, and utility-scale installers. SolarReviews operates a Solar Calculator that enables prospective customers to have a snapshot of the benefits of adding solar to their roof based on customized data for their area.

Finance

With higher financing costs industry-wide, 54% of U.S. installers said customers were less likely to take a solar loan over the past year, while cash deals are up. About 49% of sales reported were cash deals, while 41% were loans. HELOC, PACE loans, power purchase agreements, and leases combined for 10% of reported solar sales.

The top financing providers used were Credithuman (15%), Mosaic (14%), Sunlight Financial (9%),Dividend (8%), and Clean Energy Credit Union (8%).

Typical loans for loaned systems varied widely depending on whether dealer fees were assigned. Average terms are seen below.

Image: SolarReviews

Heightened cost of finance has pressed the residential solar industry. About half (49%) of installers said demand went down in 2023 versus 2022.

In California, where rates paid for exporting solar production to the grid were slashed by about 80%, about 69% of installers reported lower sales in California in 2023 versus 2022. However, 68% of installers reported including battery energy storage with their solar installation, about double the national average. Installers report a median payback period of eight years for solar systems with a battery, while standalone solar systems have a longer median payback period of about 10 years.

California was not the only state to cut rates for solar exports, a process known as net metering. Georgia, Arizona, Kansas, Arkansas, and Wisconsin all noted an increase in installed systems not tied to a net metering agreement.

Top products

As for the top equipment brands in residential solar, SolarReviews surveyed installers based on five criteria of performance and quality, brand name reputation, product warranty, pricing, and product availability from distributors. Based on the five criteria, SolarReviews listed Qcells as the top performing panel brand.

Installers said the top five most-used panels were Qcells (53%), REC (41%), Canadian Solar (35%), Mission Solar (29%), and JinkoSolar (20%). About 19% of solar installers offer one panel brand, while the majority provide alternative options to meet the needs of their customers.

For inverters, the top five most-used were Enphase (62%), SolarEdge (43%), SMA (23%), Sol-Ark (21%), and Tesla (21%). Tesla made a notable leap up into the top five, gaining a larger market share than Fronius and Generac.

Enphase was also listed as the most commonly used battery energy storage provider, offered by 46% of installers. This was followed by Tesla (42%), SolarEdge (35%), FranklinWH (29%), and Fortress Power (18%). A sizeable market share was also held by SunPower, Generac, LG Energy Solution, and HomeGrid.

Maintenance

Given that solar is often a 25-year investment, post-installation services are a critical feature in a solar agreement. About 96% of installers have access to system monitoring, while 63% said they proactively check their customers’ installations at least once per quarter to ensure they are working.

The most common reasons for service, in order, were inverter hardware failures and replacement, inverter software and setup issues, battery software updates, communications and monitoring fixes, roof leaks, battery hardware failure or replacement, wiring issues, and broken or underperforming panels.

“Fortunately, when issues do occur, they are often covered by some type of warranty, leaving only 15% of cases where the customer is responsible for repair costs,” said SolarReviews.

Outlook

The residential solar industry looks to recover from a rocky 2023, where growth was slowed by high finance costs and unfavorable policy changes like the reduction of net metering rates.

“Some solar businesses are still reeling from the events of 2023. 22% of solar businesses say they have concerns that make them unsure whether they can stay in business in the coming six months,” said SolarReviews.

Despite this uncertainty, residential solar installers appear to have a good outlook for 2024. About 54% of surveyed installers said they expect to sell more solar in 2024, and an additional 23% said they think they will be able to maintain the same level of business next year.

Notably, surveyed installers listed pv magazine as the top trusted media platform for solar news and analysis, with 52% responding we are the preferred source. The marks the second year in a row as the most-trusted media source. We thank you for your continued readership.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.

Finance

Crow Wing County is nationally recognized for financial reporting

Published

7 hours ago

May 20, 2024

Press Room

Crow Wing County is nationally recognized for financial reporting

BRAINERD — For the 10th consecutive year, Crow Wing County was awarded the Certificate of Achievement for Excellence in Financial Reporting and the Award for Outstanding Achievement in Popular Financial Reporting.

The Certificate of Achievement is the highest form of recognition in the area of governmental and financial reporting. The honor is given out by the Government Finance Officers Association of the United States and Canada.

The Certificate for Excellence in Financial Reporting was awarded to Crow Wing County for its 2022 Comprehensive Annual Financial Report compiled in 2023.

The award represents a significant accomplishment by a government and its management, the county noted in a news release.

“This is a testament to the type of work that is being done in our Finance Department,” said Finance Director Nancy Malecha. “This award recognizes our commitment in ensuring that our financial data and information is reported accurately, timely and provides transparency that the taxpayers of Crow Wing County deserve.”

Crow Wing County is one of only 16 counties in Minnesota to have earned this award.

The Award for Outstanding Achievement in Popular Financial Reporting was awarded to Crow Wing County for its 2022 Popular Annual Financial Report.

The annual report extracts information from the Comprehensive Annual Financial Report and summarizes the financial position of the county in a simple, easy to read format. Crow Wing County is one of five counties in Minnesota that have received the national award.

Financial reports are available on the Crow Wing County website at

www.crowwing.gov/771/Financial-Statements

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Finance

Tata Motors’ subsidiaries – TPEM and TMPV join hands with Bajaj Finance, offers financing program for authorized passenger and electric vehicle dealers – Tata Motors

Published

14 hours ago

May 20, 2024

Press Room

Press release -
May 20, 2024

Tata Motors’ subsidiaries – TPEM and TMPV join hands with Bajaj Finance, offers financing program for authorized passenger and electric vehicle dealers

Tata Motors Passenger Vehicles (TMPV) and Tata Passenger Electric Mobility (TPEM) join hands with Bajaj Finance to offer financing program for authorized passenger and electric vehicle dealers. In the image, Mr. Dhiman Gupta, Chief Financial Officer, Tata Passenger Electric Mobility Ltd. and Director, Tata Motors Passenger Vehicles Ltd. and Mr. Siddhartha Bhatt, Chief Business Officer, Bajaj Finance Ltd. at the MoU signing in Mumbai.

In a bid to improve options and ease of financing for the dealers, Tata Motors Passenger Vehicles (TMPV) and Tata Passenger Electric Mobility (TPEM) – subsidiaries of Tata Motors, India’s leading automotive manufacturer, have joined hands with Bajaj Finance, part of Bajaj Finserv Ltd., one of India’s leading and most diversified financial services groups, to extend supply chain finance solutions to its passenger and electric vehicle dealers. Through this memorandum of understanding (MoU), the participating companies will come together to leverage Bajaj Finance’s wide reach to help dealers of TMPV and TPEM access funding with minimal collateral.

The MoU for this partnership was signed by Mr. Dhiman Gupta, Chief Financial Officer, Tata Passenger Electric Mobility Ltd. and Director, Tata Motors Passenger Vehicles Ltd. and Mr. Siddhartha Bhatt, Chief Business Officer, Bajaj Finance Ltd.

Commenting on the partnership, Mr. Dhiman Gupta, Chief Financial Officer, Tata Passenger Electric Mobility Ltd. and Director, Tata Motors Passenger Vehicles Ltd., said, “Our dealer partners are integral to our business, and we are happy to actively work towards solutions to help them in ease of doing business. Together, we aim to further grow the market and offer our New Forever portfolio to an increasing set of customers. To that effect, we are excited to partner with Bajaj Finance for this financing program, which will further strengthen the access of our dealer partners to increased working capital.”

Speaking on this partnership, Mr. Anup Saha, Deputy Managing Director, Bajaj Finance Ltd, said, “At Bajaj Finance, we have always strived to provide best-in-class processes by using the India stack for financing solutions that empower both individuals and businesses. Through this financing program, we will arm TMPV and TPEM’s authorized passenger and electric vehicle dealers with financial capital, which will enable them to seize the opportunities offered by a growing passenger vehicles market. We are confident that this collaboration will not only benefit dealers but also contribute to, and enhance the growth of, the automotive industry in India.”

TMPV and TPEM have been pioneering the Indian automotive market with its groundbreaking efforts it both ICE and EV segments. The company’s overarching New Forever philosophy has led to the introduction of segment leading products which are being appreciated by consumers at large.

Bajaj Finance is one of the most diversified NBFCs in India with presence across lending, deposits and payments, serving over 83.64 million customers. As of March 31, 2024, the company’s assets under management stood at ₹3,30,615 crore.

Media Contact Information: Tata Motors Corporate Communications: [email protected] / 91 22-66657613 / www.tatamotors.com