Discussions on measurement, reporting & verification (MRV) drag on in Cancun. The development of a robust, practical framework for MRV could prove to be a critical component to moving a global agreement forward. And recent developments, including the introduction of a proposed compromise between developing and industrialized countries, may help facilitate agreement on this significant issue.
While governments continue to discuss MRV, the guidance for emissions measurement continues to evolve. The Greenhouse Gas (GHG) Protocol, developed by the World Resources Institute and the World Business Council for Sustainable Development, is the most widely used international accounting tool to understand, quantify, and manage greenhouse gas emissions. In 2011, the GHG Protocol is expected to release new standards for supply chain and product emissions. KPMG member firms worked with clients testing the draft standards and provided feedback to the GHG Protocol on assurance considerations within the standards.
Meanwhile, global corporations are moving forward with their own emissions reporting. Just a few weeks ago, the Carbon Disclosure Project (CDP) released its 2010 Report. The CDP, backed by over 500 institutional investors representing more than US$64 trillion of assets under management, sends an annual questionnaire to companies requesting information on greenhouse gas emissions, the significant risks and opportunities related to climate change, and the actions companies are taking to manage those risks and opportunities. The response rate for the Global 500 largest companies was 82%, sending a clear signal that even during the economic downturn, climate change remains on the agenda for the world’s largest organizations.
Beyond assisting clients with better understanding the complex issue of emissions management, KPMG’s network of firms has developed its own climate strategy centered on measuring and reducing our greenhouse gas emissions. Launched in 2008, KPMG’s Global Green Initiative established an ambition to reduce KPMG’S global emissions 25% by 2010, using a 2007 baseline. Through implementing sustainable IT programs, increasing our video-conferencing capabilities, focusing on building efficiency and procuring renewable energy, we are making progress to meeting the goal. Our most recent results, disclosed in the KPMG International response to the CDP, note we achieved a 29% per full-time equivalent net emission reduction and a 9.5% gross emission reduction in 2009.
Getting agreement on MRV would be a significant stepping stone in Cancun. It will be challenging to get there. But the good news is that some foundational aspects are already in place and moving forward as emissions accounting continues to gain momentum among global corporations.