New Platforms to BringTransparency and ImproveEmissions Measurement G l o b a l E n e r g y & E n v i r o n m e n tR e s e a r c h Te a m a t F r o s t & S u l l i v a n Contents Section Contents (continued) Section Contents (continued) Author: Victoria Courtade Strategic Imperatives Why Is It Increasingly Difficult to Grow? The Strategic Imperative 8: Factors Creating Pressure on Growth The Strategic Imperative 8 Customer Value ChainCompression Innovative BusinessModels Transformative MegaTrends Internal Challenges Customer value chaincompression as a result ofadvanced technologies,internet platforms, and otherdirect-to-consumer modelsthat enables reduction infriction and the number ofsteps in customer journeys Global forces that define thefuture world with their far-reaching impact on business,societies, economies, cultures,and personal lives The internal organizationalbehaviors that prevent acompany from makingrequired changes A new revenue model thatdefines how a companycreates and capitalizeseconomic value, typicallyimpacting its valueproposition, product offering,operational strategies, andbrand positioning Disruptive Technologies Industry Convergence A new wave of competitionfrom start-ups and digitalbusiness models thatchallenge the standingconventions of the past,compelling establishedindustries to re-think theircompetitive stance Chaos and disorder arisingfrom political discord, naturalcalamities, pandemics, andsocial unrest that impactglobal trade, collaboration,and business security New, disruptive technologiesthat are displacing the old, andsignificantly altering the wayconsumers, industries, orbusinesses operate Collaboration betweenpreviously disparate industriesto deliver on whitespacecross-industry growthopportunities The Impact of the Top 3 Strategic Imperatives on the ESG Climate RiskPlatform and Reporting Industry SI8 Innovative Business Models Disruptive Technologies Transformative Mega Trends •ESG reporting requirements forcompanies are changing rapidly andimpacting more and more industries andcompanies of various sizes.•The need to determine and control ESGmetrics will become increasinglynecessary in various scenarios. •Pressure from investors looking closely atESG initiatives of companies and thedevelopment of the legislative frameworkare pushing industries that have historicallyrefrained from ESG reporting to seeksolutions that will allow them to comply withthese requirements. •Because more companies are beingcompelled to report their ESG-relatedissues, new technologies that facilitate thistask must be incorporated.Why •The use of platforms for reporting andmonitoring ESG* metrics will increase in awide variety of industries.•The development of platforms that use AI-driven solutions will be a key factor in theincorporation of these tools in differentcompanies. Time-consuming workpreviously done manually will becomeautomated.Frost Perspective •With the European Union developing theCorporate Sustainability Reporting Directive(CSRD) and the United States Securities andExchange Commission (SEC) releasing aproposal requiring public firms to includecomprehensive climate-related informationin their SEC filings, companies that will seekto incorporate reporting solutions of its ESGtopics will grow rapidly in the next 5 years. •With companies of different sizes andsectors needing to track their ESGmetrics, the development of platformsthat are easily incorporated into theirdaily lives, allow cost savings, and providereal-time data for decision-making, will beseen more and more frequently. Growth Opportunities Fuel the Growth Pipeline Engine Growth Opportunity Analysis 6P Framework to Unlock Growth Opportunities Through SustainableFinance 6P Framework for Future of the ESG, Sustainability & Circular Economy – A Pathway to Net ZeroThe future of sustainability will rely on delivering“more with less”and shaped by the pathway of policies through toplatforms. 6P Framework: Policies and Platforms •The ESG climate risk platform andreporting industry is being impacted byvarious policies and regulationsworldwide, which is forcing companies toadapt to this changing market. •ESG platforms and software play a pivotal role in empowering companies toenhance their capabilities and support ESG measurement and tracking. Theseplatforms serve as integral tools for organizations, providing a unified and organizedspace for information on their environmental, social, and governance impacts. •The incorporation of ESG platforms is instrumental in offering companies greatertransparency in their processes, facilitating a comprehensive understanding of theirESG performance. By centralizing impact-related data, these platforms contribute toa more streamlined and efficient approach to ESG auditing and verification. •For instance, in the European Union,ESG regulations such as the greentaxonomy and the Sustainable FinanceDisclosure Regulation (SFDR) are changingthe way companies d