Corporate carbon reporting: Improving transparency and accountability

Comello, Stephen ; Reichelstein, Julia ; Reichelstein, Stefan

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URN:	urn:nbn:de:bsz:180-madoc-656540
Document Type:	Working paper
Year of publication:	2023
The title of a journal, publication series:	ZEW Discussion Papers
Volume:	23-026
Place of publication:	Mannheim
Publication language:	English
Institution:	Business School > Stiftungsprofessur für ABWL (Reichelstein 2018-) Sonstige Einrichtungen > Mannheimer Institut für Sustainable Energy Studies (MISES) Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series:	Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject:	330 Economics
Classification:	JEL: M41 , Q53 , Q54,
Keywords (English):	carbon emissions , net-zero pledges , accountability
Abstract:	Numerous multinational firms have recently pledged to reduce their greenhouse gas emissions to a net-zero position by the year 2050. These pledges currently lack a unified measurement and reporting structure, leaving the public unsure about the extent of the corporate commitments. Here, we propose a Time-Consistent Corporate Carbon Reporting (TCCR) standard that entails an initial forecast of a firm’s future carbon emissions trajectory, periodic revisions of the earlier forecasts, and updates on emissions reductions actually achieved at different points in time. The TCCR standard is applicable to alternative carbon footprint metrics, including a company’s direct emissions, carbon emissions in goods sold, or the carbon footprint assessed for individual sales products. Companies adopting the TCCR standard will provide added transparency and accountability for their carbon disclosures.