Report: The Total Economic Impact™ Of Persefoni By Forrester
The cost of the SEC’s climate disclosure proposals has become a sticking point for passage as businesses, politicians, and the SEC have gone back and forth throughout the recently closed comment period. The SEC estimated the cost of disclosure was $420,000 a year on average for smaller companies and $530,000 a year for a bigger firm's first year of compliance with the proposals. Critics of the proposals claim these amounts will be too onerous, especially for smaller reporting companies and those in the supply chains of large multinationals.
A recent report from ERM commissioned by Persefoni and Ceres, “The Cost of Climate Disclosure", assessed the current costs incurred by corporations and investors for measuring and managing climate-related data and disclosure. The analysis of 75 companies from multiple sectors supports the SEC’s estimated cost of climate disclosure, coming in at $533,000 for enterprises and $1,333,000 for institutional investors.
Today’s release of the Forrester Consulting Total Economic Impact™ study commissioned by Persefoni reveals that with Persefoni, the cost of climate disclosure can be reduced significantly by adopting its climate management and reporting platform. The study interviewed four Persefoni customers and evaluated the return on investment a composite organization experienced from deploying the Persefoni platform.
“Running these [carbon calculations on Persefoni] in advance of the SEC requirements that are coming soon, certainly will have benefits in terms of preventing future bottlenecks. We are learning how to run these exercises efficiently, and I think that we’ll have downstream qualitative and quantitative benefits in terms of efficient workflows and hopefully being ahead of our peers." – interviewee, private equity firm
The study found that the companies were able to address key challenges in measuring and managing their emissions by investing in Persefoni and that there was a quantifiable benefit in doing so.
High level findings of the study for the composite organization implementing Persefoni include:
40% efficiency improvements in carbon reporting and accounting resources by year 3 due to the automation of manual efforts with Persefoni.
Over $900k total benefits over a 3 year period from resource efficiencies and avoided spend on third-party consultants.
Additional benefits the study found such as meeting compliance requirements, improved business decision-making, elevated brand reputation, and enhanced employee engagement and retention, were not quantified in the ROI results and could result in additional quantifiable benefits if the investment was more mature.
"We switched to using Persefoni because it provides more assurance of the quality and accuracy and auditability of our data. We also now have a more granular look at emission factors at the firm level." – Managing director, global ESG, private equity firm
Persefoni released an ROI Calculator of its own; a one-of-a-kind tool to estimate the potential cost savings of using Persefoni to calculate and manage an organization’s carbon footprint. It allows you to see how a software-based approach can improve the efficiency of your team or reduce third-party consultant costs. Insert your organizational data, including how much time and money is spent on your current manual carbon accounting process, and our calculator will estimate the average annual cost savings of switching to Persefoni.
In response to a global trend of more regulated climate disclosures, including the SEC’s recent climate disclosure proposal, many organizations are moving away from the more manual labor-intensive methods of the past and turning to carbon accounting software like Persefoni for more rigor, scalability, and traceability.
The Forrester Consulting Total Economic Impact™ study revealed that Persefoni can enable companies to spend less time and resources on measuring carbon emissions; therefore, providing them with more time and resources to reduce their emissions, while ensuring compliance with any existing and upcoming carbon disclosure mandate.
To read the full study, download the report here. Or, if you are ready to see the potential cost saving the Persefoni platform can give your company, visit our ROI calculator. For more information, please visit our website at Persefoni.com or schedule a demo.
© 2022 Persefoni AI Inc. All rights reserved. This presentation is the exclusive property of Persefoni and may not be copied or distributed, in whole or in part, without the express permission of Persefoni.
Persefoni is a leading Climate Management & Accounting Platform (CMAP). The company’s Software-as-a-Service solutions enable enterprises and financial institutions to meet stakeholder and regulatory climate disclosure requirements with the highest degrees of trust, transparency, and ease. As the ERP of Carbon, the Persefoni platform provides users a single source of carbon truth across their organization, enabling them to manage their carbon transactions and inventory with the same rigor and confidence as their financial transactions.