What's Happening?
A coalition led by BlackRock, including major industrial and financial entities such as ExxonMobil, BASF SE, and Banco Santander, has announced the formation of the Carbon Measures initiative. This project aims to develop a new framework for accurately
measuring carbon emissions across supply chains and financial portfolios. The initiative seeks to address the issue of double-counting emissions in corporate reporting, offering an alternative to the widely used GHG Protocol. Amy Brachio, former Global Vice Chair for Sustainability at EY, has been appointed CEO of Carbon Measures. The group plans to expand its current 20 backers to around 100, focusing on attracting companies from high-carbon industries.
Why It's Important?
The development of a more accurate carbon tracking system is crucial for industries and investors aiming to reduce their carbon footprint and meet sustainability goals. By providing transparent emissions data, the initiative could enable investors to make informed decisions and reward companies that adopt low-carbon solutions. This could lead to significant shifts in investment strategies, particularly in high-carbon sectors, and drive broader adoption of sustainable practices. The initiative's success could also influence global standards for emissions reporting, potentially impacting regulatory frameworks and corporate accountability.
What's Next?
The Carbon Measures initiative anticipates a two-year development period for the framework, followed by five to seven years to achieve scale. As the project progresses, it is expected to attract more companies, particularly those in high-carbon industries, to join the coalition. The initiative's leaders, including ExxonMobil's CEO Darren Woods, emphasize the importance of accurate emissions data as a first step in reducing global emissions. The success of this initiative could lead to widespread changes in how emissions are tracked and reported, influencing both corporate strategies and regulatory policies.
Beyond the Headlines
The initiative could have broader implications for the global effort to combat climate change. By improving emissions tracking, it may enhance the effectiveness of carbon reduction strategies and contribute to international climate goals. Additionally, the project could set a precedent for collaboration between financial and industrial sectors in addressing environmental challenges, potentially leading to more integrated approaches to sustainability.
