Climate reporting standards are inadequate and must be expanded, experts say

Today's net-zero global governance fails to recognize some of the most important strategic actions companies can take to mitigate climate change. The standards were created primarily to guide companies in setting targets (e.g. through the Science Based Targets initiative) and to help companies track emissions reductions in their annual inventories (e.g. through the Greenhouse Gas Protocol). With the update of the guidelines, discussions began about how companies can report efforts to reduce wider emissions in society (such as carbon credits purchased and emissions avoided through product use). In response, we will explore how a focus on reducing emissions across the value chain is critical but insufficient to recognize and reward the full range of opportunities companies have to change wider systems. In addition to reporting on inventories and setting targets within GHG "scopes", a second reporting track is needed to benchmark and reward companies' efforts within their "spheres of influence". This article presents a framework that offers companies a meaningful and separate place to report efforts to use (a) their products to enable others to avoid emissions; (b) their purchasing power and (c) their policy advocacy. Recognizing and thus rewarding the commitment of subjects to broader societal interventions will be crucial to achieving the economy-wide transition to global net zero. (Kaya Axelsson, more at tandfonline.com)