Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Lack of clear reporting metrics for ESG efforts.
• Supply chain challenges related to COVID-19.
• High cost of long-duration energy storage.
• Uncertainty regarding FERC's policy changes.
• Difficulty in recovering pandemic-related costs.
• Challenges in accounting for indirect emissions (Scope 3).

Mitigation Strategies

• Industry, regulators, and stakeholders are seeking relevant reporting metrics.
• Utilities are developing strategies to improve supply chain resilience.
• Research and development of alternative long-duration storage technologies.
• FERC is considering policy and regulatory changes to facilitate the clean energy transition.
• States are allowing utilities to track COVID-related expenses for potential cost recovery.
• Companies are beginning to identify and measure Scope 3 emissions.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing operational disruptions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Environmental Metrics

ESG Focus Areas

• Employee Well-being and Development
• Diversity and Inclusion
• Environment and Emissions
• Business Ethics and Integrity
• Data Privacy and Cybersecurity
• Community Engagement

Environmental Achievements

• Offset 100% of carbon emissions from 2023 operations
• Moved to a new Massachusetts office space that eliminated Scope 1 emissions
• Maintained and promoted composting programs in Raleigh and Atlanta offices

Social Achievements

• Improved HSA employer contribution
• Continued Lifestyle Benefit Account program
• Promoted Headspace app usage
• Refined focus with Community Partner Organizations (CPOs) for greater impact
• Supported various non-profit organizations through financial contributions and volunteer activities (Veterans, Environment, Poverty Alleviation, Education Access)

Governance Achievements

• Implemented a new management structure with two new Practice Area Leaders (PALs)
• Established new controls to manage client data
• Implemented a comprehensive risk management program to enhance cybersecurity standards
• Updated security program to address emerging technology risks

Climate Goals & Targets

Environmental Challenges

• Increase in Scope 3 emissions due to resumed business travel
• Potential overstatement of electricity consumption in new Massachusetts office
• Challenges in ensuring efficacy and quality of carbon offset projects

Mitigation Strategies

• Incorporated lessons from the COVID-19 pandemic into business model to be more thoughtful about travel
• Refining carbon tracking methodology to align with best practices and secure more precise building electricity data
• Selected a diversified offset portfolio approach involving different project types and certifications

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Third-party Assurance: Lucideon CICS (limited assurance)