IPC Community

Community_Q424

IPC International Community magazine an association member publication

Issue link: https://iconnect007.uberflip.com/i/1527867

Contents of this Issue

Navigation

Page 90 of 103

IPC COMMUNITY 91 FALL 2024 Unique Challenges in the Mil/Aero Industry While supply chain management and sustain- ability are common concerns across industries, the mil/aero sector faces distinct challenges. This article delves into three critical areas where these challenges are exemplified: regulatory dis- closure and reporting, value chain resilience, and resource efficiency and waste management. Recommended actions for companies support- ing the industry are also included. 1. Regulatory disclosure and reporting ESG-focused regulations are proliferating globally, as evidenced by a growing trend requir- ing disclosures on climate and environmental impacts, such as the European Union Corpo- rate Sustainability Reporting Directive (CSRD), European Union Corporate Sustainability Due Diligence (CSDDD), U.S. Securities and Exchange Commission Climate Rule, and California SB 253-Climate Corporate Data Accountability Act, and SB 261-Climate-Related Financial Risk Act. Capability and expectations are also increas- ing with respect to reporting on the traceability of chemicals and materials throughout supply chains to address issues like greenhouse gases (GHG), per- and poly-fluoroalkyl substances (PFAS), and other materials that may potentially put a nation at risk. There are many challenges in the mil/aero industry with respect to ESG regu- latory disclosure and reporting. Some report- ing is exempt [Kyoto Protocol 1997] primarily based on national security concerns. Many sys- tems required to collect and maintain assur- ance-based data are manual, if they exist at all. Additionally, the move from proposed regula- tions to final regulations often creates delays in company actions because timelines are not fixed enough to drive the desired actions for disclo- sure and reporting. Opportunities to improve traceability for reg- ulatory and reporting disclosures are numer- ous. The "black box" of military climate-based emissions, for example, will not be more fully understood without addressing exemptions so that standard operation and war-time emissions are better estimated and known. The U.S. mili- tary, cognizant of the dangers posed by climate change, has stated in its 2021 Climate Adaption Plan how it plans to address climate-related threats across five lines of effort: 1. Climate-informed decision-making 2. Train and equip a climate-ready force 3. Resilient built and natural installation infrastructure 4. Supply chain resilience and innovation 5. Enhance adaptation and resilience through collaboration System innovation for disclosure and report- ing abounds, but standardization and harmoni- zation of metrics still need to be developed to provide consistency and efficiencies required to truly understand ESG impact. Sovereign nations play a critical role in determining what is and is not reported and disclosed with respect to mil/ aero activities. As demand increases from all types of stakeholders, only time will tell what will remain as voluntary disclosures and reporting vs. what will shift to mandatory. Stanley Merritt

Articles in this issue

view archives of IPC Community - Community_Q424