Planning sustainable carbon neutrality pathways: accounting challenges experienced by organizations and solutions from industrial ecology

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Main Authors: de Bortoli, Anne, Bjorn, Anders, Saunier, Francois, Margni, Manuele
Format: Preprint
Published: 2025
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author de Bortoli, Anne
Bjorn, Anders
Saunier, Francois
Margni, Manuele
author_facet de Bortoli, Anne
Bjorn, Anders
Saunier, Francois
Margni, Manuele
contents Purpose : Planning a transition towards sustainable carbon neutrality at the organization level raises several accounting challenges. This paper aims to shed light on key challenges, highlight answers from current accounting standards and guidance, point out potential inconsistencies or limits, and outline potential solutions from the industrial ecology community through systemic environmental assessment tools, such as life cycle assessment (LCA) and environmentally-extended input-output (EEIO) analysis. Results and discussion: We propose a Measure-Reduce-Neutralize-Control sequence allowing organizations to plan their sustainable net-zero strategy, and discuss 24 accounting challenges occurring within this sequence. We then outline ways forward for organizations planning their carbon neutrality trajectory, pointing to existing resources, and for guidelines providers and the industrial ecology communities to address current limitations in the development of future accounting methods and guidelines. Overarching solutions to many accounting issues are to develop comprehensive, open-source, and high-quality life cycle inventory databases, to enable improved dynamic assessments and prospective LCA through integrated assessment models, to refine methods for assessing mineral scarcity and environmental impacts, the supply in some metals being expected to be a bottleneck to the energy transition, and to identify the appropriate climate metrics for planning sustainable carbon neutrality pathways at the organizational level.
format Preprint
id arxiv_https___arxiv_org_abs_2501_10456
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Planning sustainable carbon neutrality pathways: accounting challenges experienced by organizations and solutions from industrial ecology
de Bortoli, Anne
Bjorn, Anders
Saunier, Francois
Margni, Manuele
Physics and Society
Purpose : Planning a transition towards sustainable carbon neutrality at the organization level raises several accounting challenges. This paper aims to shed light on key challenges, highlight answers from current accounting standards and guidance, point out potential inconsistencies or limits, and outline potential solutions from the industrial ecology community through systemic environmental assessment tools, such as life cycle assessment (LCA) and environmentally-extended input-output (EEIO) analysis. Results and discussion: We propose a Measure-Reduce-Neutralize-Control sequence allowing organizations to plan their sustainable net-zero strategy, and discuss 24 accounting challenges occurring within this sequence. We then outline ways forward for organizations planning their carbon neutrality trajectory, pointing to existing resources, and for guidelines providers and the industrial ecology communities to address current limitations in the development of future accounting methods and guidelines. Overarching solutions to many accounting issues are to develop comprehensive, open-source, and high-quality life cycle inventory databases, to enable improved dynamic assessments and prospective LCA through integrated assessment models, to refine methods for assessing mineral scarcity and environmental impacts, the supply in some metals being expected to be a bottleneck to the energy transition, and to identify the appropriate climate metrics for planning sustainable carbon neutrality pathways at the organizational level.
title Planning sustainable carbon neutrality pathways: accounting challenges experienced by organizations and solutions from industrial ecology
topic Physics and Society
url https://arxiv.org/abs/2501.10456