Issue link: https://resources.tangoanalytics.com/i/1508311
Communication around the impacts of climate change is much clearer than it was a decade ago. We are also quickly reaching a point of consensus for understanding the importance of ESG measures and climate issues across the corporate world. Ultimately, the path forward for businesses and organizations when it comes to sustainability and emissions reductions efforts still remains somewhat ambiguous, but there is substantial evidence to suggest that the benefits of addressing GHG accounting and sustainability measures within one's organization now, despite continued uncertainty in the markets, outweigh the option to continue playing it safe through business as usual for a few more years (waiting until more stringent rules take the stage or in a worst case scenario, environmental and social emergencies force corporations to make abrupt changes). A clear first step for all organizations looking to play a more active role in an economy that prioritizes sustainability measures and greater corporate accountability for emissions is producing financial grade GHG accounting. Corporations may also experience increasing pressure from consumers, investors, and policymakers to disclose both their direct greenhouse gas (GHG) emissions and supply chain (Scope 3) emissions in the net zero transition economy. Carbon or GreenHouse Gas (GHG) Accounting is the process by which organizations quantify and track their direct and indirect GHG emissions in order to understand climate impacts, set goals, reduce emissions, and report to external entities. One might also hear this process referred to as a carbon or greenhouse gas inventory. This guide will explore basic concepts and terminology of carbon markets and climate finance, why GHG accounting is important, and key technical steps for undergoing the process. The report aims to provide guidance to all levels of experience, whether you are new to GHG accounting and looking for a basic overview or an entity with past experience conducting GHG accounting and looking to grasp a clearer picture of where that data can take you. Introduction Corporations that integrate carbon accounting into their operational strategy are seeing the resulting competitive advantages of doing so: namely, reducing costs, building resilience to physical and liability risks, attracting new investors, and contributing to the positive societal impact of climate change solutions. Sustainability & Energy Management Simplified