Who are the Carbon Leaders? Improving Rankings and Business Ambition

Abstract

As contributors to the problem of global warming and as innovators and implementers of clean energy solutions, corporations play a critical role in climate change mitigation. In growing numbers, companies are now calling for policy action and are engaging in voluntary carbon management efforts. However, the effectiveness of company response is unclear. Investors, NGOS and governments rely on company CSR reports, sustainability rankings and ESG indices as proxy indicators, yet these are unreliable. In this paper, we investigate the question, who are the corporate carbon leaders? Mapping the main carbon efforts of recognized US brand companies we confirm inconsistencies and gaps in corporate sustainability leadership definitions, non-standardize measurement methodologies, and unclear and inaccurate performance metrics. To aid in greater corporate environmental accountability, more responsible decision-making and smarter regulation, we argue the need for more harmonized and broader tracking and evaluation of company carbon performance that includes implementation evaluation and environmental outcome assessment.