What's Happening?
The Greenhouse Gas (GHG) Protocol has launched the Land Sector and Removals (LSR) Standard, marking the first global framework for companies to measure agricultural emissions and carbon removals. This
new standard aims to address a significant gap in corporate carbon accounting by providing a recognized benchmark for assessing the environmental impacts of agriculture. The LSR Standard will enable companies to report on carbon emissions and both Scope 1 and Scope 3 carbon removal activities. Agriculture and land use account for approximately a quarter of total global emissions, and until now, there has been no credible standard for measuring greenhouse gas emissions and carbon removal in this sector. The standard was developed over five years with input from 300 external reviewers, 4,000 public comments, and pilot tests involving 96 firms. It is set to take effect on January 1, 2027.
Why It's Important?
The introduction of the LSR Standard is a significant development in the global effort to combat climate change. By providing a standardized method for measuring agricultural emissions, the GHG Protocol is helping to close a critical gap in environmental accountability. This standard will allow companies to better understand and manage their carbon footprints, potentially leading to more sustainable agricultural practices. The ability to accurately measure and report emissions is crucial for companies aiming to meet environmental, social, and governance (ESG) goals. Furthermore, this standard could influence policy-making and regulatory frameworks, encouraging more stringent environmental regulations and promoting transparency in corporate environmental impact reporting.
What's Next?
As the LSR Standard comes into effect in 2027, companies will need to adapt their reporting practices to align with the new framework. This may involve investing in new technologies and processes to accurately measure emissions and carbon removals. Additionally, the standard could prompt further developments in carbon accounting methodologies, potentially leading to more comprehensive and integrated approaches to environmental impact assessment. Stakeholders, including policymakers, environmental organizations, and the business community, will likely monitor the implementation of the standard closely to assess its effectiveness and impact on global emissions reduction efforts.
