Strategic Framework Guides Lawmakers, Regulatory Bodies, and Industry Leaders to Standardize Scope 3 Emissions Reporting, Enhance Data Integrity, and Streamline Compliance Efforts
LOS ANGELES & DES MOINES, Iowa–(BUSINESS WIRE)–The Climate Registry (TCR), a non-profit organization empowering organizations to fight climate change, and EcoEngineers (Eco), a clean energy consulting, auditing, and advisory firm, will present their joint white paper, “Guidance for Developing Carbon Disclosure Legislation: How to Address Supply Chain and Data Quality Challenges,” at New York Climate Week on Wednesday, September 25, during the California Climate Leadership Forum. The findings will be discussed by a panel of experts including:
- Henry Stern, California State Senator
- Laith Amin, Vice President, Growth and Strategic Development, EcoEngineers
- Liane Randolph, Chair, California Air Resources Board
- Reuven Carlyle, Founder and EVP of Earth Finance and former Washington state legislator (moderator)
The panel will address the challenges and opportunities in Scope 3 emissions measurement and disclosure, providing insights from both policy and industry perspectives.
Scope 3 emissions are indirect anthropogenic GHG emissions that occur in the supply or value chain and represent the embedded emissions contained in a product or service. Scope 3 emissions often represent the largest source of emissions, accounting for more than 75% of a business’s total GHG emissions on average, according to the World Resource Institute.
Scope 3 emissions play a critical role in corporate climate action, underscoring the recent trend in stricter GHG reporting standards and transparency in data collection and disclosure and the shift from voluntary to mandatory reporting regimes. For example, California Senate Bills (SB) 253 and SB 261, collectively known as the ‘California Climate Accountability Package’ and authored by California State Senators Henry Stern and Scott Wiener, were signed into law in October 2023.
These regulations represent significant advances in global efforts to enhance corporate transparency in climate impacts, yet most organizations haven’t even started to close the gap on their Scope 3 disclosures. This is partially due to the complexity associated with collecting entire supply chain data.
White Paper Offers Roadmap to Solution
The new white paper by TCR and Eco offers a roadmap for legislators, regulators, and industry leaders to develop and implement climate disclosure regulations that not only capture Scope 3 emissions but also enhance data accuracy and reduce compliance complexity.
The collaboration between TCR and Eco helps simplify the complexities associated with Scope 3 reporting, providing actionable guidance on how to reduce the costs associated with carbon disclosure while maintaining the integrity and credibility of reported data.
“Scope 3 emissions accounting must become a priority as regulatory bodies increasingly call for full disclosure,” said Amy Holm, executive director of TCR. “Entities of all sizes across every industry should recognize that compliance may no longer be optional over the medium term. Those who fail to prepare early may be at risk of being left behind, facing mounting compliance costs and reputational risk as climate accountability tightens globally.”
“While Scope 3 emissions reporting has historically been discretionary, demand for comprehensive supply chain traceability and visibility into product or service embedded emissions intensity is growing rapidly,” said Laith Amin, vice president, growth and strategic development at Eco and one of the paper’s authors.
Key Highlights of the White Paper
- Policy Recommendations: The white paper provides detailed recommendations for policymakers on how to craft legislation and regulation that balance the need for accurate GHG data measurement and collection with the practical realities of industry operations.
- Standardization and Industry Protocols: The paper advocates for the development of standardized methodologies and industry-specific protocols to reduce variation in Scope 3 reporting and to enhance the measurement, collection, and reliability of data.
- Technology Integration: It explores the potential of using distributed ledger technology to streamline supply chain traceability and verification processes, ensuring data integrity while addressing confidentiality concerns.
To submit your interest in attending the California Climate Leadership Forum, please contact [email protected].
To download the white paper, visit: www.theclimateregistry.org.
About The Climate Registry
The Climate Registry (TCR) is a non-profit organization that empowers organizations to be climate leaders by providing best-in-class programs and services for measuring, verifying, and disclosing greenhouse gas emissions. Since 2007, TCR’s innovative initiatives and events have brought together a bipartisan coalition of governments, businesses, academia and NGOs to drive climate ambition and action on the road to net zero. TCR grew out of the California Climate Action Registry (CCAR), expanding its GHG reporting program to other jurisdictions across North America. Backed by an advisory body consisting of states, provincial, and tribal jurisdictions TCR continues to maintain high-quality GHG reporting programs, protocols, and thought leadership for its members. For more information about TCR, visit www.theclimateregistry.org.
About EcoEngineers
EcoEngineers is a consulting, auditing, and advisory firm with an exclusive focus on the energy transition. From innovation to impact, Eco helps its clients navigate the disruption caused by carbon emissions and climate change. Eco helps organizations stay informed, measure emissions, make investment decisions, maintain compliance, and manage data through the lens of carbon accounting. Its team of engineers, scientists, auditors, consultants, and researchers live and work at the intersection of low-carbon fuel policy, innovative technologies, and the carbon marketplace. Eco was established in 2009 to steer low-carbon fuel producers through the complexities of emerging energy regulations in the United States. Today, Eco’s global team is shaping the response to climate change by advising businesses across the energy transition. For more information, visit https://ecoengineers.us.
Contacts
Mary Shaughnessy
For EcoEngineers
[email protected]
312.218.4508
