What makes GHG accounting and reporting essential for Corporates?

Stakeholder Expectations

• Investors are increasingly considering environmental factors in their decision-making process. GHG reporting provides transparency and demonstrates a company’s commitment to sustainability. This can attract socially responsible investors and improve access to capital markets.

Compliance and Sustainable Development

• GHG reporting ensures compliance with laws and regulations, mitigating legal consequences. 
• Transitioning to low-carbon technologies and practices drives sustainable development, fosters innovation, stimulates economic growth, and promotes resilient green industries for a prosperous future. 

Performance And risk management

• It is important for performance management as it tracks emissions, identifies hotspots, and sets reduction targets to improve environmental performance and efficiency. 
• Regular reports help monitor and adjust initiatives. It also helps with risk management by identifying and managing climate-related risks, assessing vulnerabilities, and developing strategies to adapt to changing regulations, physical impacts, and market shifts.

Innovation, Market Opportunities, and Cost Savings

• Sustainability reporting encourages businesses to assess their operations, identify inefficiencies, and optimize resource use. This process leads to improved operational efficiency, reduced waste, and streamlined processes. 
• Sustainability practices lead to innovation and new market opportunities. They identify cost-saving opportunities and enable access to new markets for sustainable products. Organizations can drive sustainable development and achieve a competitive advantage in the evolving green economy.

Different standards and guidance for GHG accounting

1. Corporate Standard: A guideline for measuring and reporting greenhouse gas (GHG) emissions from a corporation’s operations and activities. And help out the industries, how to create a carbon accounting inventory. 
2. Corporate Value Chain (Scope 3) Standard: A standard for measuring and reporting GHG emissions throughout a corporation’s value chain, including both upstream and downstream activities.
3. Product Standard: A standard for measuring and reporting the life cycle GHG emissions associated with a specific product or service.
4. GHG Protocol for Cities: A framework for assessing and reporting GHG emissions from cities, including both direct and indirect sources.
5. Mitigation Goal Standard: A standard for setting and tracking GHG reduction targets, providing guidance on measuring emissions, and evaluating progress towards mitigation goals.
6. Policy and Action Standard: A standard for assessing and reporting the impact of policies and actions on GHG emissions, helping organizations evaluate their effectiveness.
7. Project Protocol: A protocol for measuring and accounting for GHG emissions reductions or removals associated with specific projects or initiatives.
8. ISO 14064: This international standard by the International Organization for Standardization (ISO) specifies principles and requirements for quantifying, monitoring, and reporting organization-level greenhouse gas emissions and removals.