Advancing climate accounting and standards

Corporate climate action has grown extensively over the past decade. As of 2024, more than 24,800 companies report to CDP and more than 7,000 companies have set net zero targets through the Science Based Targets initiative.

Greenhouse gas (GHG) accounting frameworks and net zero standards are essential pillars of corporate climate action, often underpinning the requirements for regulatory disclosure. GHG accounting enables companies to measure, monitor and reduce their GHG emissions, while net zero standards establish guidelines to report on net zero commitments, ambition and progress.

1.

The challenge

The surge in voluntary commitments around net zero has also generated an increased need for updates and revisions to GHG accounting and decarbonization guidance to ensure it meets the needs of companies as they mature in their decarbonization journey, as well as regulatory requirements across jurisdictions.

2.

The business case

Active engagement from companies to standard revisions and updates ensures new guidelines, approaches and standards will ultimately be feasible and fit-for-purpose. Technical input, proposals and solutions from companies can deliver valuable contributions as we strive towards clearer guidance on topics such as data quality, boundary definitions, accounting approaches, decarbonization pathways, neutralization and more.

3.

The solution

The period 2024 -2027 period will be pivotal for climate accounting frameworks and net zero standards as these undergo revisions. The Advancing Climate Accounting and Standards (CAS) workstream helps companies actively contribute to the ongoing voluntary standards revisions and steer changes to their climate strategy through. Through consultations, technical engagement and collaboration platforms, such as the WBCSD Alignment Group to the GHG Protocol Technical Working Groups (TWGs), this track facilitates the contributions of a progressive business voice.