Pantas Climate Solutions: Carbon Emission Management, Disclosure and Reduction Solution By Pantas Software Sdn Bhd
What is Carbon Emission (GHG Emissions) Accounting? Carbon Emission Accounting refers to the process of measuring, managing, and disclosing a company's greenhouse gas (GHG) emissions. The calculation approach needs to be based on internationally recognized guidelines such as the Greenhouse Gas Protocol ("GHG Protocol"). The concept of carbon accounting is not new; in fact, it has been around since its establishment in 1997 under the Kyoto Protocol, which was the first international treaty for GHG reductions. The GHG Protocol is an established and comprehensive global standardized framework to measure and manage greenhouse gas (GHG) emissions. It is the most widely used GHG accounting standard in theworld. Once a company's carbon emissions have been measured, they need to be disclosed according to local or international reporting standards, frameworks, or guidelines set by the respective regulatory bodies applicable to the company. For example, the International Sustainability Standards Board (ISSB), Global Reporting Initiative (GRI) Standards, and many other specific reporting standards. There are also specific reporting requirements set by international reporting databases such as CDP (previously known as Carbon Disclosure Project) and the Science Based Targets initiative (SBTi).
Listed companies ("Listcos") in Malaysia should be familiar with the term "ESG" (Environmental, Social, and Governance). Bursa Malaysia mandates Listcos to conduct a Materiality Assessment and determine the salient and material issues faced by a company, along with methods of mitigation. Each component of ESG encompasses crucial aspects of a company's operation and its impact on various stakeholders. Most importantly, greenhouse gas emissions fall under the Environment scope of ESG, making carbon accounting even more critical to the growth and success of an organization.
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MSCA 2023 I VOL.5
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