A dynamic framework to align company climate reporting and action with global climate targets

Abstract

AbstractThere are global aspirations to reach net zero emissions, which triggered the development of standards, guidance and tools to measure and manage climate action across countries, sectors and companies. However, carbon accounting inaccuracies, ambiguous emissions disclosures and unambitious climate targets are hampering these aspirations. This paper reports on the disparity between high‐level guidance and practical implementation of carbon accounting and reporting at company level. By conducting a systematic literature analysis and focussing on the English Water sector, we utilise case study data from Northumbrian Water Limited (NWL), to identify limitations in the current guidance and frameworks. The results indicate the necessity for enhanced alignment in high‐level guidance, particularly regarding the Greenhouse Gas Protocol and the Science‐Based Target Initiative. It is evident that clarity and consistency from high‐level resources are essential for climate mitigation. This paper shows, depending on the sector and company types, that different benefits are gained from using the available resources. We propose a carbon measurement and management process for the English Water sector (and beyond) to reach net zero targets and make recommendations for decision makers. This helps to understand best practices of carbon accounting and reporting and to make effective investment decisions. Consequently, we advocate for policy interventions to improve the standardisation of carbon accounting models. Harmonising international regulatory frameworks and standards is needed, which will empower organisations to effectively assess, manage and reduce their carbon footprints.