Issue link: https://resources.tangoanalytics.com/i/1508311
Importance of GHG Accounting to Corporates & Use Cases Why should an organization or corporate entity put in the effort to, at minimum, thoroughly understand carbon accounting, and ideally undergo the process itself? What sorts of business goals may be served unexpectedly in the process or what external benefits may arise after conducting emissions accounting? Companies must understand their position in relation to GHGs to ensure long-term financial success in an economy that is actively changing in response to climate change. 01 Increased adoption of reliable carbon accounting is critical to achieving the goals set out under the Paris Agreement to limit the temperature increase to 1.5°C above pre-industrial levels. Climate change ethics: 02 An entity looking to track and disclose its performance against commitments to achieving net zero or conduct measurement and verification techniques for other emissions reduction initiatives will require accurate emissions inventories and accounting. Goal tracking for sustainability: 03 Cost savings opportunities can be identified in conjunction with emission reduction strategies. Emissions inventories may also reveal inefficient processes or leakages that allow companies to address these operational disadvantages. Understanding reliance on emissions through emissions accounting can reveal potential exposure to future risk associated with volatile carbon markets, and the potential of future resource scarcity associated with climate change and environmental degradation. Managing climate risks and identifying emission reduction opportunities: Sustainability & Energy Management Simplified