Baker Tilly Case Study: Printing and Distribution Company Looks To Boost EcoVadis Score With Assurance

The client 

A Wisconsin-based direct mail printing and distribution company is known for its leading-edge technology solutions with locations in Wisconsin, Illinois and Texas. As a company with heavy printing operations, it recognizes the importance of environmental sustainability and is proactively taking steps to mitigate its environmental impact. To demonstrate its commitment to sustainability, the company participates in EcoVadis (an ESG rating agency), voluntarily reporting its sustainability efforts and earning a prestigious silver rating for its 2023 efforts. 

The challenge 

The company wanted to ensure both internal and external stakeholders had confidence in their data and EcoVadis submission, and as a result, engaged Baker Tilly to provide limited assurance over its greenhouse gas (GHG) emissions. Not only would assurance provide stakeholders with confidence in the accuracy of data, it would also aid the organization in compliance with regulatory standards, safeguard against allegations of greenwashing and result in an improved future EcoVadis score. 

Focused approach 

To ensure thoroughness, accuracy and compliance with relevant standards, the Baker Tilly team executed the assurance engagement in four key phases of work: 

Engagement planning 

During the engagement planning phase, the Baker Tilly team outlined the scope, objectives, timeline and resource allocation essential for conducting the limited assurance engagement effectively. This included collaborating closely with the client to define the boundaries of assessment, identify emissions sources, determine the reporting period and establish compliance with relevant standards, such as the GHG Protocol Corporate Accounting and Reporting Standard (GHG Protocol) and regulations. 

Data collection 

Once the engagement planning details were finalized, documented and agreed upon by all stakeholders, management was responsible for collecting and providing the necessary data, along with an assertion that the GHG emissions calculated from that data were fairly stated. The Baker Tilly team was actively engaged with management throughout this phase to ensure the data provided aligned with the subject matter. 

Testing and analysis 

Upon receiving management’s assertion and the data and information needed to conduct the limited assurance engagement, the Baker Tilly team began testing procedures in accordance with the Association of International Certified Professional Accountants (AICPA) standards. These procedures were conducted to evaluate whether management’s assertion over the accuracy and reliability of the organization’s GHG emissions data was fairly stated and to identify material errors or inconsistencies. Procedures performed included making inquiries of members of management responsible for the collection, analysis and aggregation of GHG emissions data, analyzing variances and anomalies in GHG emissions data and reperforming mathematical calculations. The Baker Tilly team also reviewed documentation supporting GHG emissions calculations, and emission factors used and ensured alignment with the GHG Protocol. 

Reporting 

Once completed with testing, the Baker Tilly team prepared a limited assurance review report that clearly communicated the nature and scope of the engagement, the criteria used for assessment, the procedures performed, key findings, limitations within the engagement and their opinion as to whether or not management’s assertion was fairly stated. 

Results achieved 

In summary, the Baker Tilly team performed a limited assurance review over the organization’s adherence to the GHG Protocol in the reporting of its Scope 1, 2 and 3 GHG emissions inventory. The limited assurance engagement provided the organization and its stakeholders with confidence in their GHG emissions inventory and reporting processes. In addition, assurance is a key indicator in the EcoVadis rating methodology and can potentially increase performance as a result of pursuing assurance of key disclosures.

Call to action 

Organizations engaging with ESG rating agencies like EcoVadis, CDP (formerly known as the Carbon Disclosure Project) and DJSI (Dow Jones Sustainability Index) have a pathway to enhance their scores by ensuring the accuracy of their ESG data through independent third-party assurance. As a trusted CPA firm with specialized skills and deep knowledge, third-party assurance provides stakeholders with confidence in the accuracy of data, compliance with regulatory standards and safeguards against allegations of greenwashing.

Connect with an ESG specialist at Baker Tilly to learn more.