What companies can learn from a carbon accounting pilot in Afghanistan

illuminem summarizes for you the essential news of the day. Read the full piece on Harvard Business Review or enjoy below:

🗞️ Driving the news: IDG, a security services firm operating in Afghanistan, conducted a carbon accounting pilot using the E-liability approach, highlighting how service-sector companies can rigorously measure and reduce carbon emissions in their supply chains
• The pilot focused on the emissions associated with providing security services to UN compounds in Afghanistan

🔭 The context: The E-liability approach, co-developed by Harvard professors, offers a robust framework for tracking carbon emissions in supply chains, similar to how companies track costs
• This system encourages businesses to reduce emissions from both direct operations and suppliers, without double-counting, and provides accurate data for decarbonization strategies

🌍 Why it matters for the planet: The pilot’s results showed that emissions from local food procurement made up 38.5% of the company’s carbon footprint, challenging assumptions that locally sourced food would have lower emissions
• The insights demonstrate the importance of precise data collection in carbon reduction, particularly in challenging operational environments like Afghanistan

⏭️ What's next: IDG plans to seek external verification of their carbon accounting results and hopes to inspire more widespread adoption of the E-liability method
• The company has begun including carbon emissions data in its invoices to UN clients, setting a precedent for transparent carbon accounting

💬 One quote: “The whole purpose of E-liability is that it is auditable,” said Lucy Hymas, IDG’s CFO
• "We think the errors in our first-iteration numbers are conservative, but the recursive process and audit will improve the accuracy"

📈 One stat: IDG’s food-related emissions accounted for 38.5% of the company’s total emissions, higher than anticipated, and above the global average of 25%

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