Even as climate legislation, regulation, and taxation proceed slowly, some companies are responding voluntarily to the expectations of their environmentally sensitive shareholders and customers by starting the journey to decarbonize their supply chains. E-liability accounting, introduced in the November 2021 issue of the Harvard Business Review, enables organizations to build upon well-established accounting principles to address current shortfalls in measuring and reducing carbon emissions in complex supply chains.
Getting a Clearer View of Your Company’s Carbon Footprint
E-liability accounting has helped a Singapore-based tire manufacturer and a German cement producer reduce their emissions.
April 03, 2023
Illustration by Guillem Casasus
Summary.
E-liability accounting is a new technique that will help customers factor in a product’s environmental footprint into their purchasing decisions and will help create a competition dynamic that leads to reduced carbon outputs. This article describes two pilot studies — by an Asian tire manufacturer and a German cement producer — that illustrate how the E-liability approach can do that.