C2ES recognizes that setting clear targets, establishing meaningful metrics, and understanding both risks and opportunities are crucial for effective climate action. Our work in this realm focuses on helping businesses, policymakers, and other stakeholders develop science-based targets and navigate the complex landscape of climate-related risks and opportunities according to best practices and industry standards.
For over twenty years, C2ES has been engaging with frameworks for corporate greenhouse gas (GHG) accounting and emissions reduction target setting. Greenhouse gas accounting and target setting are crucial components of corporate sustainability strategies, urging companies to quantify the emissions associated with their business activities and therefore enhancing company transparency, accountability, and understanding of their environmental impact.
Guided by established standards such as the GHG Protocol, Science Based Targets Initiative (SBTi), ISO standards, and emerging frameworks, organizations are increasingly adopting ambitious emission reduction targets aligned with climate science and international agreements. GHG accounting and science-based reduction targets provide a roadmap for organizations to report on their emissions and align their efforts with climate science while fostering the incentive for innovation. The efforts of these frameworks are indispensable in advancing corporate sustainability strategies both now and in the future.
Today, companies face significant barriers to investing in their value chain and claiming greenhouse gas reductions. Without the right tools and clear guidelines, meeting Scope 3 climate targets becomes challenging. This is why C2ES works with companies and stakeholders to shape new approaches for capturing emissions reductions across value chains. As part of the AIM Platform Secretariat— working alongside the Center for Green Markets Activation and the Gold Standard—and the AIM criteria, C2ES seeks to incentivize greater investment in solutions that deliver significant emissions cuts, especially in hard-to-abate sectors.
As part of a broader set of business strategies to address climate change, companies globally have adopted internal carbon pricing to mitigate climate risks and enhance their competitiveness in a low-carbon economy. Sectors such as oil, gas, minerals, and electric power have used this strategy, which involves placing a monetary value on greenhouse gas emissions, since the 1990s. Leading firms, such as those in C2ES’s Business Environmental Leadership Council, have been using internal carbon pricing approaches to justify low-carbon investments to align with emerging regulatory landscapes and changing investor and customer demand. Our research on internal carbon pricing explores the different internal carbon pricing approaches companies use and key lessons learned.
C2ES has been at the forefront of enhancing corporate awareness of climate-related financial risks and opportunities. Our “Foresight is 20/20” initiative provided valuable insights into how businesses can effectively assess and disclose climate risks while capitalizing on emerging opportunities in the low-carbon transition. We’ve also been actively engaged in the discourse surrounding the Securities and Exchange Commission’s (SEC) recent climate disclosure rule, offering analysis and guidance to help companies navigate these new requirements. Our work continues to support both public and private sector entities in integrating climate considerations into their financial decision-making processes. As companies move beyond inventorying and goal setting, they are increasingly adopting comprehensive low-carbon transition planning to chart a strategic path toward a sustainable future.