Exxon-backed coalition challenges how companies account for emissions. Some say it could stop them from decarbonizing

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illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal (WSJ Pro) or enjoy below:

🗞️ Driving the news: An Exxon-backed coalition is challenging how companies measure carbon emissions
• The Carbon Measures initiative, supported by 23 firms including Exxon Mobil and Santander, promotes “product-level” carbon accounting instead of tracking emissions across entire supply chains
• Supporters argue the approach could unlock demand and investment for low-carbon products
• Critics warn it could weaken corporate accountability and slow decarbonization

🔭 The context: The proposal clashes with the dominant Greenhouse Gas Protocol framework
• Current standards divide emissions into Scope 1, 2 and 3, holding companies accountable for downstream emissions from products they sell
• Exxon CEO Darren Woods argues Scope 3 unfairly blames producers for customer behavior
• Climate leaders including former BP CEO John Browne and ex-Unilever chief Paul Polman are calling for a single, consistent global accounting system
• The World Resources Institute, co-founder of the GHG Protocol, stresses accounting must support Paris Agreement goals

🌍 Why it matters for the planet: Carbon accounting shapes real-world emissions reductions
• Shifting responsibility to buyers risks allowing high-emitting producers to avoid reducing fossil fuel output
• Weak or fragmented standards could slow supply-chain decarbonization and lock in carbon-intensive products
• Also, robust, comparable emissions data is critical for steering investment toward technologies aligned with limiting warming to 1.5°C

⏭️ What’s next: GHG Protocol and ISO are revising rules to improve consistency and product-level assessments
• Carbon Measures plans to engage with standard setters, while critics push to prevent fragmentation
• An expert forum at the Aspen Institute next month is expected to test whether product-level accounting complements or undermines climate action

💬 One quote: “We need to account for emissions in one way rather than in myriad different ways that cause confusion,” — John Browne

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