New Carbon Accounting Alliance introduced to standardise emissions disclosures

21 Nov New Carbon Accounting Alliance introduced to standardise emissions disclosures

Over 30 companies within the carbon accounting industry have partnered to establish a new alliance to standardise emission calculations and disclosure processes, making claims and reporting even more credible.

The new carbon accounting alliance is managed by environmental consultancies Planet Mark and ClimatePartner and 30 additional businesses, auditors, software companies and certifying bodies who measure emissions for over 23,000 organisations worldwide.
The Alliance intends to work with policymakers to urge better regulation of carbon emissions disclosures. The group has already started conversing with the UK’s Department for Energy Security and Net-Zero (DESNZ) to request further clarity on plans to standardise emissions disclosures from businesses, beyond the current Streamlined Energy and Carbon Reporting (SECR) scheme. The Alliance recognises that many companies will not be capable of reporting emissions without added engagement from landlords or tenants. As a consequence, the alliance is pushing for mandatory emissions, water and waste sharing for commercially-rented properties. A separate challenge will highlight to policymakers the necessity for education, training and skills. The Alliance appreciates that many businesses lack an in-house team with the relevant carbon accounting skills, leading to an opportunity for the introduction of a structured qualification in this discipline.

Aside from policy discussions, the Alliance will drive enhanced knowledge-sharing between group members and facilitate the development of shared processes and tools. The Alliance co-founder and managing director of ClimatePartner, Emilien Hoet, believes collaboration over competition will solve the climate challenge. After discussing with clients to partner in their industry, it seemed the next logical move, stated Hoet.

The Alliance hopes that they can provide the platform to share challenges and experiences and have a positive, collective impact on policies. The Alliance appreciates the progress in standardising emission calculations, including the introduction of the Greenhouse Gas Protocol and the measures implemented by the Science-Based Targets Initiative (SBTi), but argues such guidance is still open to discussion in some cases.
A greater number of companies are now measuring and disclosing their emissions voluntarily as mandates continue to emerge in various markets. CDP confirmed earlier this year that 23,000 businesses now use their disclosure platform, with most using climate disclosure solutions. In the global private industry, emissions as a whole have plateaued or started to increase, apart from the short-term decline during the pandemic.

There are growing concerns that companies will not achieve their climate targets. Only 25% of businesses disclosing through CDP are on the right path to achieving their emissions targets. Climate Action 100+ recently released an assessment of 170 of the highest emissions businesses worldwide, suggesting that only one in five have reduced their emission intensity at a level necessary to achieve the 1.5C criteria.

The new Carbon Accounting Alliance will work with members and the wider industry to use accounting tools to create direct and insightful emission reductions. The Alliance explains that its members appreciate that measurement and reporting will not solve the climate crisis and must combine with meaningful action.