Carbon Accounting

"The good news is that a 1.5-degree pathway is technically achievable. The bad news is that the math is daunting. Such a pathway would require dramatic emissions reductions over the next ten years—starting now."

~ McKinsey

Introduction

Corporate regulators across the world now require companies to proactively assess, disclose and manage the key climate risks they face in a world which is rapidly transitioning towards a net zero emissions future.

Apart from this regulatory expectation, companies are also facing heightened pressure from their customers, suppliers, bankers and insurers to not only inform the market of the climate risks they face, but to also set emissions reductions targets and transition their businesses away from both direct emissions and exposure to high emitting customers and suppliers in the value chain.

With this unprecedented momentum in the public and private sectors, there will be significant business and liability risks for companies as they seek to respond to the dynamic and continually-evolving regulatory, market and community expectations in relation to climate change – particularly in setting their own emissions reductions goals and putting in place climate transition plans and targets.

The Challenge

Achieving net-zero carbon emissions is a challenge requiring coordinated action from governments, businesses, and individuals worldwide. It won’t happen without substantial changes to current industry structures and practices or the adoption of new technologies and business models.

A study of Fortune 500 companies’ greenhouse gas emissions shows there’s a great deal of inconsistency and underreporting regarding emissions inventories. Considering these companies account for around 27% of global emissions, addressing global climate change won’t happen unless we can accurately measure and report large enterprises’ carbon footprints.