Update on Carbon Accounting & Reporting

The key takeaway from CarbonOne’s webinar today on the state of carbon accounting and reporting was that in the coming years, it will be as ubiquitous and regulated as financial accounting.

Some trends driving the uptick in corporate data gathering, reporting and auditing of supply chain emissions include several that have been touched on in past reports:

1. Regulatory requirements are coming soon in key areas: carbon border adjustment mechanisms, mandatory carbon reporting (and regular annual filings) for publicly-traded companies, and Scope 3 reporting requirements for good sold into the state of California.

2. Net-zero commitments being made by corporate brands are serious obligations overseen by organizations with more teeth compared to weaker carbon-neutral claims.

3. Retail pressure to report emissions, and ongoing reductions in emissions, are spreading.

4. Progressive firms are using reporting to show leadership and gain a competitive advantage with retail-level customers, while others fall behind and risk losing market share.

5. Greenwashing ceases to represent a solution due to new regulations coming that will require science-based evidence to back label claims.

6. Technology solutions are emerging to evolve manual approaches into automated accounting and reporting systems.

Let’s look deeper into the impact these trends will have on farm marketing systems, supply chain economics, and CPG brand positioning.