Charting the Course: A Historical Perspective on Carbon Reporting Standards

Whilst knowing and even remembering important events and dates in history is not required to undertake carbon reporting, it is useful, I believe, to understand how this has evolved over time.

In 1974 R.G. Hunt developed the first carbon accounting framework called the Life Cycle Assessment (LCA). The LCA method was created to track the environmental impact of products and services from raw materials, through usage and subsequent disposal. This concept of encompassing the data for the entire life cycle of the product or service is also known as “cradle-to-grave”. A term which is used today.

In 1987 the United Nations held a meeting in Montreal which resulted in the signing of the Montreal Protocol where 198 countries agreed to ban ozone depleting substances but reducing the production and usage of those products. The most well known of these were the chlorofluoracarbons (CFC’s) which were used in aerosols, solventl and refrigerants. 

This was a milestone agreement where not only was the Protocol agreed unanimously, but it ratified the idea that the actions we take were depleting the ozone layer and impacting the environment of the planet.

Ten years later, in 1997, the United Nations met in Kyoto and ratified the Kyoto Protocol where the signatories agreed to reduce carbon emissions 5% below the level in 1990. Different targets were set for different countries to take into account their relevant capabilities in achieving the targets. The targets only applied to developed countries.

In 2015, the Paris Agreement was signed expanding the emissions reduction targets to apply to developing countries as well. This agreement was signed by 193 countries who agreed to work to limit global warming to less than 2 degrees and preferably less than 1.5 degrees below pre-industrial levels by 2050. 

It was during the Kyoto meeting that the GHG (greenhouse gases) methodology was developed. The first iteration of the GHG Corporate Standard was published in 2001 with amendments in 2004. This is the global standard that provides the framework for every business around the world to report their carbon emisssions data. 

Building on the Corporate Standard, in 2011, the Corporate Value Chain (Scope 3) and Product Life Cycle Standards were issued.

All carbon reporting undertaken now uses the GHG Protocol standards.

We are proud to advise that this article was written by the team and not produced by AI.