How can carbon reporting frameworks help companies achieve sustainability goals?

2 Why use carbon reporting frameworks?

Using carbon reporting frameworks can help companies achieve sustainability goals in several ways. First, they can help companies identify and quantify their GHG emissions sources, and set reduction targets and action plans. Second, they can help companies demonstrate their commitment and progress to investors, customers, regulators, and other stakeholders, and increase their transparency and accountability. Third, they can help companies benchmark their performance against peers, industry standards, and best practices, and identify opportunities for innovation and improvement.

3 What are the challenges of carbon reporting frameworks?

Although carbon reporting frameworks can provide many benefits, they also pose some challenges for companies. One of the main challenges is the complexity and diversity of the frameworks, which can make it difficult to choose and apply the most appropriate one for the specific context and objectives of the company. Another challenge is the data availability and quality, which can affect the accuracy and reliability of the emissions calculations and disclosures. A third challenge is the alignment and integration of the frameworks with the existing business processes, systems, and culture, which can require significant resources and change management.

4 How to choose a carbon reporting framework?

When deciding on a carbon reporting framework, companies should consider the purpose, scope, sector, and audience of the reporting. Questions to ask include what the drivers and objectives of the reporting are, what the scope and boundaries of the reporting are, what sector-specific requirements and expectations are, and who the target audience and stakeholders are. Additionally, companies should consider if the reporting is mandatory or voluntary, if it is for internal or external use, which GHG emissions sources and categories are included, which organizational and operational units are covered, if there are any industry standards or best practices to follow, what information needs and preferences stakeholders have, and how the reporting will be communicated and verified.

5 How to apply a carbon reporting framework?

Applying a carbon reporting framework involves several steps, such as establishing a GHG emissions inventory and baseline, setting GHG emissions reduction targets and action plans, reporting and disclosing the GHG emissions and impacts, and reviewing and improving the GHG emissions management. To do this, you need to use the relevant methods and tools to collect and calculate the emissions data, criteria and indicators to measure and monitor the performance, formats and channels to communicate and validate the information, as well as feedback and evaluation mechanisms to identify and address the gaps and opportunities.

6 What are the best practices of carbon reporting frameworks?

For companies to use carbon reporting frameworks effectively and efficiently, there are several best practices that should be followed. These include aligning the reporting with the company's vision and strategy, ensuring support from senior management and key stakeholders, and adopting a consistent and comprehensive approach to the reporting. Additionally, it is important to leverage existing data sources and integrate the reporting with other sustainability initiatives. Engaging and educating employees, customers, suppliers, and partners can also help foster a culture of collaboration and continuous improvement.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?