This paper tackles a growing challenge in corporate climate reporting: the gap between what companies do to reduce emissions and what current greenhouse gas (GHG) accounting methods are able to credibly reflect. Building on ongoing debates around Scope 3 emissions, market-based accounting, and corporate claims, this report introduces a new approach designed to better capture the real-world impacts of corporate climate action.
This paper addresses a core weakness in current corporate GHG accounting: the inability of Scope 3 methods to accurately reflect the impact of specific corporate climate actions. The authors propose a multi-statement reporting framework that pairs traditional accounting methods with a new Mitigation Intervention statement designed to quantify mitigation outcomes beyond a company’s emissions inventory boundary.
Using consequential accounting, the framework focuses on the causal effects of ambitious, measurable interventions both within and beyond corporate value chains. Supported by clear eligibility principles, governance structures, and independent verification, the approach aims to improve credibility, reduce greenwashing risks, and redirect corporate resources toward high-impact climate action.
Feature / Derik Broekhoff lays out the elements of a more equitable and ambitious corporate net-zero framework on TED Countdown.
Other publication / SEI experts informed the 2025 version of the Carbon Offset Guide, a resource to learn about carbon credits and mitigating greenhouse gas emissions.
Media coverage / In an article in <i>Sierra</i>, the Sierra Club's magazine, SEI Senior Researcher Derik Broekhoff commented on carbon offsetting and net-zero as a global goal.
