Carbon Measures: A New Corporate Carbon Accounting Framework

After a 30-year tenure at EY, Amy Brachio has been appointed the new Chief Executive of Carbon Measures. The former Global Vice Chair for Sustainability at EY will now lead a coalition of major corporations aiming to develop a new carbon accounting framework.

The initiative, named Carbon Measures, includes backing from prominent firms such as BlackRock, ExxonMobil, Santander, BASF, Linde and Mitsui.

Its objective is to address what its supporters identify as serious flaws in current corporate emissions reporting. This campaign signals a move away from the GHG Protocol, which is the established global standard used by a majority of S&P 500 companies.

Critics of the current system, which was developed in the late 1990s, suggest it permits double-counting, where multiple entities can claim the same CO₂ molecules in their reporting.

Conversely, defenders of the GHG Protocol state that this feature is a strength because it promotes comprehensive management of greenhouse gases.

Addressing flaws in carbon accounting

Amy Brachio, with nearly three decades of experience at EY, brings considerable expertise to her new position.

During her time at EY, she was instrumental in developing services to assist global clients with their sustainability objectives and led the firm’s strategy to reduce its own carbon emissions by 40% by 2025.

She also directed EY's Business Consulting practice, a division with over 40,000 professionals. Her background includes co-chairing the S30 group of Chief Sustainability Officers and serving on the WEF's Global Future Council.

Data integrity is a central theme of her work. For Amy, "precise and comparable data has proven something of a holy grail" in the field of emissions tracking. She argues that the current methodology "simply won't be sufficient going forward".

The debate over double-counting in carbon accounting continues, with proponents of the existing method claiming it incentivises more actors to pursue emissions reductions.

The success of Carbon Measures may depend on its ability to gain widespread industry adoption, though its foundational group of 20 backers includes some of the world's largest companies.

Cross-industry support for verifiable data

The mission of Carbon Measures has attracted support from leaders across various industries.

Ana Botin, Executive Chair of Santander, says that an accurate and transparent calculation of carbon emissions "is the foundation for meaningful climate action." This sentiment is shared by other executives who see clear data as essential for financial and strategic planning.

Francois Jackow, CEO of Air Liquide, another supporter, said that harmonised product-level carbon intensity standards will enable investors "to reward low-carbon solutions."

The push for a new standard is also championed by ExxonMobil and its CEO, Darren Woods, who believes that "the first step to reducing global emissions is to know where they're coming from."

He explains: "Today, we don't have an accurate system to do this".

For several years, the oil major has advocated for a global system to measure the carbon intensity of different products.

A ledger-based framework to foster innovation

Amy sees the coming years as a critical period for climate action, explaining: "We are at a critical point in history."

She adds: "We see and feel the impact of climate change in our daily lives, and collectively, we aren’t moving fast enough to materially reduce carbon emissions."

She frames the challenge as one that requires a universally applicable solution: "We also know that people around the world need homes with reliable, affordable energy, roads, hospitals, data centres and modern infrastructure."

Carbon Measures advocates for optimised data protocols to provide clarity for corporate and political decision-makers.

"We’re advancing a ledger-based carbon accounting framework that provides accurate, verifiable, and timely company- and product-level data," Amy explains.

The coalition’s belief is that improved measurement will foster market-led solutions.

Amy states: "We’re united in the belief that when measurement is accurate and regulatory standards are clear, markets create competition and innovation toward the most efficient solutions."

She sees this moment as a chance to build on what has already been achieved.

"I see an incredible opportunity to build on existing progress and apply proven accounting principles to what the world needs most: accurate measurement to achieve real carbon emissions reductions," she adds.