Promoting Global Greenhouse Gas Accounting to Drive Corporate Climate Actions and Asian Practices

Publication | June 2024
SHARE THIS PAGE

Emissions data help investors assess companies’ capacity to cope with climate change risks and opportunities.

Key Points

  • Promoting sustainability and climate information disclosure is becoming a crucial corporate strategy. Standardization of disclosure is progressing, with mandatory disclosure and legislation in some regions.
  • The most emphasized aspect is measuring greenhouse gas (GHG) emissions based on the GHG Protocol. Emissions data help investors assess companies’ capacity to cope with climate change risks and opportunities.
  • Scope 3 emissions (from suppliers and users) account for over 70% of a company’s total GHG emissions. Measuring Scope 3 is challenging but essential to understand where risks concentrate.
  • Mandating disclosure only for Scope 1 and Scope 2 might tempt companies to outsource emissions, creating an illusion of reduction.
  • GHG estimations need improvement by incorporating country-specific emission parameters. Compiling detailed activity-based data on emission factors is essential but challenging.
  • Developing country-specific emission factors improves GHG accounting quality, contributes to setting reduction goals, and potentially attracts private investment in decarbonization projects.

Additional Details

Authors
Type
Series
Subjects
  • Environment
  • Private sector development