After conducting thorough carbon accounting methods, corporations may wish
to advance further with emissions reduction efforts and goal tracking for
sustainability. In this approach, it is important to understand that emissions
offsets are not the same as emissions reductions, and the former should only be
used as a supplementary last resort method for any residual emissions after
undergoing rigorous reduction strategies. Most offsets on the market do not
reliably reduce emissions and 52% of approved carbon offsets were from projects
that would have very likely been built anyway.
Investors may also want additional proof of secure assets that goes beyond
purely accounting for and tracking current and past emissions. Investors are
looking for indicators to assess a corporation's long-term strategies for climate
change and net zero pathways that may include goal tracking towards emissions
reductions, sourcing materials along the supply chain from other companies
aligned with climate goals, and investing in enabling conditions or resilience
measures for potential climate risk. Climate change is a systemic issue that will
require a blended approach of rigorous climate finance and forward-looking
investments in value chain initiatives and emissions reductions.
Holistic Measures Beyond GHG
Accounting:
BEYOND SCIENCE-BASED TARGETS: A BLUEPRINT FOR CORPORATE ACTION ON
CLIMATE AND NATURE
Sustainability & Energy Management Simplified
