A commentary on E-liability: does it bring something new to GHG accounting?
E-liability is a proposed new approach for corporate-level greenhouse gas accounting, winning the 2022 Harvard Business Review-McKinsey Award for “groundbreaking management thinking”. It is actively promoted by the E-liability Institute and piloted by major international companies, such as Hitachi a...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2024-12-01
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| Series: | Carbon Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/17583004.2024.2372331 |
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| Summary: | E-liability is a proposed new approach for corporate-level greenhouse gas accounting, winning the 2022 Harvard Business Review-McKinsey Award for “groundbreaking management thinking”. It is actively promoted by the E-liability Institute and piloted by major international companies, such as Hitachi and Tata Steel. The intention is that E-liability should replace the widely adopted GHG Protocol Corporate Accounting & Reporting Standard, which underpins recent regulatory standards including the IFRS Climate-related Disclosures Standard, and the European Sustainability Reporting Standards. It is therefore important to ask what is new and what are the merits of E-liability? One positive feature of E-liability that could be adopted or enhanced in the established GHG Protocol approach is the direct requirement for suppliers to disclose cradle-to-gate data to downstream customers. However, one of the major limitations with E-liability is the limited provision of information on downstream emissions, which reduces the usefulness of disclosures for managing the abatement of these emissions, and for assessing company exposure to climate-related risk. Our analysis concludes that much of what is proposed in the E-liability method is not new, and that the key aspects that are new result in a detrimental loss of information. |
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| ISSN: | 1758-3004 1758-3012 |