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The remedy to global environment and development problems lies not in reducing growth, but in breaking the connection between expanded prosperity and depleted resources.

Greenhouse gas reporting is the process of measuring, documenting, and disclosing emissions that contribute to climate change. This practice is crucial for identifying emission sources and tracking progress towards reduction goals. As global awareness of environmental issues grows, the importance of structured frameworks for reporting emissions becomes evident.

Emerging policies and regulations are driving the need for standardized greenhouse gas reporting. These frameworks ensure that data is accurate, transparent, and comparable across different sectors. Effective reporting not only aids in regulatory compliance but also promotes informed decision-making for climate change mitigation.

In this blog post, we will explore key aspects of greenhouse gas reporting within the context of emerging policies. Topics include:

  1. The significance of accurate data
  2. The role of different sectors
  3. The necessity for international collaboration
 

Understanding Greenhouse Gas Reporting

Greenhouse gas (GHG) reporting involves the process of measuring, documenting, and disclosing greenhouse gas emissions. This systematic approach is crucial for tracking an organization’s carbon footprint, enabling stakeholders to assess environmental impact accurately.

Key Elements of GHG Reporting:

  1. Measurement: Quantifying emissions from various sources within an organization.
  2. Documentation: Keeping detailed records of emission data and methodologies used.
  3. Disclosure: Publicly sharing emission data to ensure transparency and accountability.

Reliable data management and transparent methodologies are essential components of effective GHG accounting. Accurate measurement and documentation foster trust among stakeholders, while transparent reporting practices enhance the credibility of climate action efforts. Robust GHG accounting frameworks underpin these processes, guiding organizations in consistent and comprehensive emission tracking.

The Link Between GHG Reporting and Climate Change Mitigation

Greenhouse gas reporting is essential in addressing climate change as it helps with making informed decisions and setting specific targets. By accurately reporting emissions, organizations can:

  • Identify Main Sources of Greenhouse Gas Emissions: Understanding the primary sources of emissions within an organization is the first step toward effective management. This identification process enables businesses to pinpoint high-emission activities and areas for improvement.
  • Monitor Progress Over Time: Consistent reporting allows for continuous tracking of emission levels, helping organizations to measure the effectiveness of their climate strategies and make necessary adjustments.
  • Implement Effective Strategies to Reduce Emissions: With a clear understanding of their emission profiles, organizations can develop and implement targeted strategies that address specific sources of greenhouse gasses, thereby enhancing overall efficiency.
  •  

Advantages of Greenhouse Gas Reporting

This process offers several advantages:

  • Informed Decision-Making: Provides data-driven insights for developing policies and measures to cut emissions. Reliable data helps decision-makers prioritize actions that achieve the greatest impact.
  • Target Setting: Facilitates the creation of realistic and measurable emission reduction targets, aligning with international climate goals. Organizations can set benchmarks that are both ambitious and achievable, ensuring steady progress toward sustainability.
  • Risk Management: Identifies potential risks related to regulatory changes, market shifts, or environmental impacts. Proactive reporting helps businesses anticipate and mitigate these risks effectively.
 

Enhancing Accountability

Accountability ensures that businesses and governments are held accountable for their climate commitments, fostering transparency. This accountability is crucial for several reasons:

  • Stakeholder Trust: Transparent reporting builds trust among stakeholders, including investors, customers, and regulatory bodies. It demonstrates a commitment to environmental responsibility.
  • Compliance: Helps organizations comply with national and international regulations regarding greenhouse gas emissions. Adhering to these standards avoids legal repercussions and enhances corporate reputation.
  • Performance Benchmarks: Allows for benchmarking against industry standards or competitors. Organizations can gauge their performance relative to others in their sector, driving continuous improvement.

By integrating these practices into their operations, organizations not only contribute to global climate goals but also position themselves as leaders in sustainability.

Frameworks for Effective Greenhouse Gas Reporting

In an era where sustainability and environmental responsibility are paramount, the Global Reporting Initiative (GRI) and the Carbon Disclosure Project (CDP) stand out as pivotal frameworks for businesses and governments. These initiatives help entities worldwide understand, manage, and communicate their impacts on critical sustainability issues, particularly greenhouse gas emissions. By providing standardized methods for measurement and disclosure, GRI and CDP aim to promote transparency and accountability, fostering a more sustainable future. This article delves into the strengths and limitations of both frameworks, examining their roles in driving climate action and supporting the evolving regulatory landscape.

Global Reporting Initiative (GRI)

The Global Reporting Initiative (GRI) aims to help businesses and governments worldwide understand and communicate their impact on critical sustainability issues. It provides standardized methods for organizations to measure, manage, and disclose their greenhouse gas emissions.

Strengths:

  • Comprehensive Approach: Covers a wide range of sustainability topics beyond just greenhouse gas emissions.
  • Global Reach: Widely adopted across various sectors and regions, enhancing comparability.

Limitations:

  • Complexity: Detailed guidelines can be challenging for small and medium-sized enterprises (SMEs) due to resource constraints.
  • Flexibility: High flexibility in reporting can lead to inconsistencies.
 

Carbon Disclosure Project (CDP)

The Carbon Disclosure Project (CDP) focuses on driving companies and cities to measure, disclose, manage, and share vital environmental information. It also provides standardized methods for organizations to measure, manage, and disclose their greenhouse gas emissions.

Strengths:

  • Focus on Climate Change: Specifically tailored towards climate-related disclosures, aiding targeted climate action.
  • Investor Influence: Strong influence among investors encourages corporate transparency.

Limitations:

  • Voluntary Nature: Being a voluntary initiative may result in selective participation, potentially skewing data reliability.
  • Cost Implications: Participation fees can be a barrier for smaller organizations.

Both GRI and CDP play crucial roles within emerging policies by providing structured approaches to greenhouse gas accounting. They promote consistent and comparable data collection, essential for credible reporting. As regulatory landscapes evolve, these frameworks will likely adapt to ensure they continue supporting robust climate action efforts.

Sector-specific Challenges and Opportunities in Greenhouse Gas Reporting

Greenhouse gas (GHG) reporting presents unique challenges and opportunities across sectors, each requiring tailored approaches for accurate emissions measurement and disclosure.

Power Generation

This sector is crucial in GHG reporting due to its significant global emissions. Challenges include:

  • Complex Emission Sources: Emissions come from fossil fuels, renewables, and nuclear energy.
  • Data Detail: Accurate reporting needs detailed data on energy production and consumption.
 

Industry

Manufacturing and mining face distinct challenges:

  • Diverse Emission Profiles: Various processes emit different GHGs, complicating measurement.
  • Technological Costs: Implementing new emission-reducing technologies can be expensive.
 

Transport

Heavy reliance on fossil fuels makes this sector’s reporting challenging:

  • Mobile Sources: Tracking emissions from vehicles, ships, and aircraft is complex.
  • Infrastructure Gaps: Lack of infrastructure for electric vehicles (EVs) hinders emission reductions.
 

Agriculture

Agriculture has unique challenges due to complex biological processes:

  • Methane Emissions: Livestock farming produces significant methane.
  • Land Use Changes: Deforestation for agriculture impacts carbon sequestration.

Each sector’s specific characteristics highlight the need for specialized GHG reporting approaches. Addressing these challenges with innovative solutions can significantly reduce global emissions.

Addressing Data Limitations and Uncertainties in Greenhouse Gas Reporting

Accurate greenhouse gas (GHG) reporting depends on having access to good quality data. However, many organizations face significant challenges in this area, including:

  • Data Gaps: Incomplete or missing data can compromise the integrity of emissions inventories.
  • Quality Assurance: Making sure that the data is accurate often requires strict quality control measures which can be time-consuming and expensive.
  • Indirect Emissions: Scope 3 emissions, which are indirect emissions from activities like supply chain operations, are particularly difficult to measure because they are spread out and involve multiple parties.
 

Strategies for Improving Data Robustness

To make GHG reporting more reliable, organizations can use several strategies:

  • Scenario Analysis: This involves creating multiple scenarios to account for uncertainties in data, providing a range of potential outcomes rather than a single figure.
  • Third-Party Verification: Getting independent auditors to review and validate data can significantly improve its credibility and help identify areas for improvement.

By addressing these challenges through robust methodologies and leveraging external expertise, companies can improve the integrity of their GHG reporting and contribute more effectively to global climate goals.

Incorporating Climate Risk Disclosure into Greenhouse Gas Reporting

The changing landscape of climate-related financial reporting is becoming more connected to GHG disclosure efforts, showing the importance of being transparent. Climate risk disclosure requires organizations to assess and disclose how climate change affects their financial health and operational stability.

Key aspects include:

  • Financial Impacts: Understanding how climate risks affect revenue streams, asset values, and liabilities.
  • Operational Risks: Identifying vulnerabilities in supply chains and production processes due to climate change.
  • Strategic Planning: Aligning business strategies with long-term sustainability goals to mitigate climate-related risks.

These elements ensure that stakeholders can make informed decisions while promoting accountability in corporate practices.

Driving Corporate Leadership Through Science-Based Targets and Net-Zero Commitments

Ambitious emissions reduction targets play a critical role in driving corporate climate action. The Science-Based Targets initiative (SBTi) provides companies with a clear pathway to achieve emissions reductions that align with the latest climate science. By setting science-based targets, businesses can ensure their strategies are robust, transparent, and consistent with global efforts to limit warming to 1.5°C.

Net-zero commitments further amplify this corporate responsibility. The Net-Zero by 2050 campaign encourages organizations to adopt comprehensive decarbonization plans aiming for net-zero greenhouse gas emissions by mid-century. This includes reducing direct emissions and investing in carbon removal solutions.

The Science-Based Targets initiative (SBTi)

The SBTi offers detailed guidance and resources to help companies set emissions reduction targets. This includes sector-specific methodologies and tools tailored to various industries, ensuring that each business can develop strategies aligned with scientific requirements. By following these guidelines, organizations can create robust plans that are actionable and effective.

Companies committing to science-based targets benefit from an external review process. This third-party validation ensures that the targets are ambitious, yet achievable, and align with the latest climate science. The SBTi’s endorsement not only boosts a company’s reputation but also builds trust among stakeholders, investors, and consumers by demonstrating a genuine commitment to sustainability.

The Net-Zero by 2050 Campaign

The Net-Zero by 2050 campaign pushes companies to develop comprehensive plans that address all aspects of their carbon footprint. This includes reducing emissions from direct operations (Scope 1), indirect emissions from energy consumption (Scope 2), and other indirect emissions throughout the value chain (Scope 3). By considering these varied sources, businesses can implement more integrated and effective decarbonization efforts.

Setting a target for net-zero emissions by 2050 helps organizations align their short-term actions with long-term sustainability objectives. This forward-looking approach ensures that immediate measures contribute to broader environmental goals, fostering resilience and adaptability in the face of evolving climate-related risks. It also provides a clear, strategic direction that can guide investments in innovation and sustainable technologies.

Moreover, participating in the campaign often involves adopting science-based targets, which are essential for ensuring that corporate actions are grounded in the latest climate science. This alignment not only enhances credibility but also supports global efforts to limit temperature rise, thereby safeguarding ecosystems and communities.

Additionally, engaging with the Net-Zero by 2050 initiative can enhance stakeholder relationships. Transparent reporting and progress on climate commitments can build trust with investors, customers, and regulatory bodies. Demonstrating leadership in sustainability can differentiate a company in the marketplace, attract environmentally conscious consumers, and potentially lead to financial incentives or support from green investment funds.

By integrating these initiatives, companies not only contribute to global climate goals but also gain competitive advantage through improved resilience and stakeholder trust.

Conclusion

Advancing greenhouse gas reporting practices in alignment with emerging policy frameworks remains critical for addressing the urgent challenges of climate change. Accurate and transparent GHG reporting enables informed decision-making, setting the stage for effective mitigation strategies.

Key Takeaways

  • Prioritize Transparency: Ensuring transparency and accountability in greenhouse gas reporting within your organization fosters trust and drives impactful climate action.
  • Advocate for Stronger Regulations: Supporting stronger government regulations and international cooperation can lead to more consistent and robust emission reduction efforts.
  • Embrace Technological Innovations: Leveraging advancements in technology, such as blockchain and remote sensing, can significantly enhance data accuracy and transparency.

By prioritizing these elements, organizations can play a pivotal role in the global effort to mitigate climate change. The collaboration between businesses, governments, and international bodies is essential for creating a sustainable future. For more on how best to manage your greenhouse gas accounting feel free to contact us.

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Image credit: Dan Meyers on Unsplash

Carbon Footprint

L’Oréal Taps 13 Global Startups to Boost Climate, Nature, and Circular Innovation

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L’Oréal Taps 13 Global Startups to Boost Climate, Nature, and Circular Innovation

L’Oréal, the global beauty giant, has unveiled its first cohort of startups participating in its new sustainable innovation program, L’AcceleratOR. The program chose 13 startups focused on climate, nature, and circularity. They were selected from nearly 1,000 applicants across 101 countries. It aims to find, pilot, and scale solutions that address key environmental challenges in the beauty industry and beyond.

The initiative is part of L’Oréal’s larger sustainability plan, called “L’Oréal for the Future.” This plan includes bold goals for climate action, resource use, and a shift to a circular economy by 2030 and beyond.

Inside L’AcceleratOR: Funding, Pilots, and Scale

L’AcceleratOR is a €100 million (about US$116 million) sustainable innovation program. The funding will be provided over a five-year period. The program helps startups and small to medium-sized enterprises (SMEs) that create sustainable solutions for L’Oréal and the beauty industry.

L’AcceleratOR is in partnership with the University of Cambridge Institute for Sustainability Leadership (CISL). Selected startups will enter an intensive support phase led by CISL. They will receive funding, expert guidance, and access to L’Oréal’s research and testing capabilities. The aim is to help these companies become pilot-ready and scale their solutions for broader use.

The accelerator focuses on key strategic themes tied to L’Oréal’s sustainability goals:

  • Next-generation packaging and materials
  • Nature-sourced ingredients
  • Circular solutions
  • Data intelligence tools to measure and reduce environmental impacts

Startups may run six- to nine-month pilots with L’Oréal and its partners. Successful pilots may be scaled across global operations if they show measurable benefits.

Ezgi Barcenas, Chief Corporate Responsibility Officer, remarked:

To accelerate sustainable solutions to market, we are being even more intentional and inclusive in our pursuit of partnerships through “L’AcceleratOR”. We are really energized to be co-designing the future of beauty with the University of Cambridge Institute for Sustainability Leadership, and these 13 change makers.”

The 13 Startups and Their Focus Areas

The selected startups and SMEs represent a range of sustainable innovations across climate, nature, and circularity. They fall into four main categories:

  • Packaging and materials
  • Nature-sourced ingredients
  • Circular solutions
  • Data intelligence
L’Oréal L’AcceleratOR, 13 Selected Startups by Category
Source: L’Oréal

These 13 startups use different ways to cut environmental impact. They focus on product design, supply chain management, and manufacturing to promote circularity.

How L’AcceleratOR Fits L’Oréal’s 2030 Strategy

L’AcceleratOR is part of L’Oréal’s broad 10-year sustainability roadmap, “L’Oréal for the Future.” The roadmap covers four main areas: climate, nature, materials circularity, and communities. It includes the 2030 goals that aim to transform operations while driving innovation in sustainable solutions.

L'Oréal net zero 2030 goal
Source: L’Oréal

Some of L’Oréal’s key targets under the roadmap include:

  • 100% renewable energy for all operations.
  • Sustainable sourcing of at least 90% bio-based materials in formula and packaging.
  • 100% recycled or reused water for industrial purposes.
  • Reducing virgin plastic use by 50%.
  • Sourcing 50% of packaging from recycled or bio-based materials.
  • Cutting Scope 1 and 2 emissions by 57% and some Scope 3 emissions by 28% against a baseline year.
L'Oréal net zero roadmap 2030
Source: L’Oréal

The L’AcceleratOR program expands these efforts by tapping external innovation. L’Oréal supports startups to speed up solutions that can cut environmental impacts throughout its value chain.

L’Oréal’s Scope 3 emissions are by far the largest part of its footprint, as seen below. This reflects impacts from sourcing, production inputs, logistics, product use, and end-of-life. In 2024, Scope 1 and 2 fell further to about 227,051 tCO₂e, showing continued reductions in direct and energy-related emissions. Total emissions, though, remained roughly stable at 7.41 million tCO₂e, increased with Scope 3 again the largest component.

L’Oréal Group GHG Emissions 2024
Source: L’Oréal

L’Oréal also has other sustainability initiatives. For example, its Fund for Nature Regeneration has invested more than €25 million (about US$29.1 million) in projects like forest, mangrove, and marine ecosystem restoration. This reflects L’Oréal’s commitment to nature and biodiversity alongside climate action.

Water stewardship is another strategic focus. In 2024, 53% of the water used in L’Oréal’s industrial processes came from reused and recycled sources. This was supported through water recycling systems in areas facing water stress.

Implications for the Beauty and Consumer Goods Sector

L’Oréal’s accelerator initiative reflects a larger industry trend. Many global companies are increasingly investing in sustainable technologies through partnerships, incubators, and venture funds. These partnerships aim to speed up climate, nature, and circular solutions. They combine corporate scale with startup agility.

The L’AcceleratOR program connects L’Oréal with companies that use innovation and partnerships to achieve their environmental goals. It also shows that sustainability strategies can go beyond internal changes. They can support the larger ecosystem, too. Helping startups scale can benefit whole industries, not just single companies.

This trend is important in areas like packaging, materials science, green chemistry, and digital climate tools. Packaging waste and carbon emissions from supply chains are major problems for consumer goods. This is especially true in beauty and personal care.

The beauty industry accounts for about 0.5% to 1.5% of global greenhouse gas emissions. Most of these emissions come from the value chain, not from company factories. For many beauty companies, around 90% of total emissions are Scope 3, such as raw materials, packaging, transport, and product use.

Raw material sourcing, including agricultural inputs and plastics, can make up 30% to 50% of industry emissions. Consumer use also adds a large share, especially for products that require water and heat.

beauty industry emissions

The industry produces about 120 billion beauty packaging units each year worldwide. Much of this packaging is single-use and hard to recycle. A typical beauty product can generate several kilograms of CO₂-equivalent over its life cycle, from production to disposal.

Notably, most emissions are in the value chain. So, new solutions in packaging, materials, and data tools are key to cutting the beauty sector’s climate impact. This is what L’Oréal seeks to address. By supporting solutions in these areas, it hopes to change old industry practices.

Early Expectations and Next Steps 

The 13 selected startups will now enter the pilot readiness phase of the L’AcceleratOR program. During this phase, the startups will refine their technologies with CISL guidance and L’Oréal support. The goal is to ensure their solutions are ready for real-world testing in commercial environments.

If pilot outcomes are successful, solutions may be scaled beyond initial tests. Some could fit into L’Oréal’s global operations or be used by industry partners. This would speed up sustainable progress.

L’Oréal and CISL plan future cohorts for the L’AcceleratOR program. Future rounds will create chances for more companies. They will also expand the pipeline of sustainable solutions.

By partnering with the University of Cambridge Institute for Sustainability Leadership and supporting startups across packaging, materials, ingredients, circular systems, and data tools, L’Oréal aims to fast-track real solutions that reduce environmental impacts.

The initiative boosts L’Oréal’s sustainability plan, “L’Oréal for the Future.” This plan sets bold goals for 2030, focusing on renewable energy, resource use, cutting emissions, and promoting circularity.

The pilot and scaling opportunities in the program can help new technologies join global supply chains. This support will aid L’Oréal and its partners in tackling climate, nature, and circular economy challenges towards its net-zero goals.

The post L’Oréal Taps 13 Global Startups to Boost Climate, Nature, and Circular Innovation appeared first on Carbon Credits.

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Microsoft (MSFT) Signs 2.85 Million Soil Carbon Credit Deal With Indigo in Landmark Regenerative Agriculture Move

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microsoft

On January 15, Indigo Carbon PBC announced one of the largest soil carbon transactions to date, marking a major milestone for regenerative agriculture in the voluntary carbon market. Under a 12-year agreement, Microsoft will purchase 2.85 million soil carbon credits generated through the Carbon by Indigo program, a large-scale, U.S.-based initiative focused on delivering high-integrity carbon removals.

This agreement underscores the increasing confidence of large corporate buyers in nature-based carbon removal pathways, particularly those that integrate climate impact with tangible on-the-ground benefits for farmers and ecosystems.

Third Transaction Strengthens Microsoft’s Carbon-Negative Path

Microsoft’s FY24 climate data reflects a 23.4% increase in overall emissions compared to its base year, largely due to rapid business expansion. Despite this, Microsoft retired 595,922 metric tons of carbon removals to meet its annual carbon-neutral target.

The latest purchase represents the third carbon credit transaction between Microsoft and Indigo. It follows earlier deals for 40,000 tonnes of credits in 2024 and 60,000 tonnes in 2025. Together, these agreements underscore Microsoft’s long-term strategy to meet its commitment to become carbon negative by 2030.

Looking ahead, Microsoft has contracted for nearly 22 million metric tons of carbon removals to be delivered over the next 15 years or more. This includes 2.8 million tons expected in FY30, the company’s carbon-negative target year, with additional volumes planned beyond FY31.

microsoft carbon emissions carbon removal
Source: Microsoft

READ MORE: 

Indigo Ag Strengthens High-Integrity Carbon Removal Supply

The broader regenerative agriculture market continues to gain momentum.

  • Research showed that, valued at $1.52 billion in 2025, the market is projected to grow from $1.76 billion in 2026 to around $5.77 billion by 2034, reflecting a CAGR of 15.97%.

Practices such as cover cropping, rotational grazing, reduced tillage, and compost application improve soil carbon levels and microbial diversity. As voluntary carbon markets mature, regenerative agriculture is emerging as a durable climate solution and a scalable economic opportunity for farmers.

For Indigo, the deal further cements its leadership in scaling verified soil carbon removals, demonstrating that regenerative agriculture can deliver credits at volumes large enough to meet enterprise-level demand.

regenerative market
Source: Precedence Research

Regenerative Agriculture: Climate Impact Plus Farm Productivity

Governments and climate institutions increasingly recognize regenerative agriculture as a powerful carbon removal tool.

  • Research suggests these practices could remove more than 3.5 gigatons of CO₂ equivalent annually, while also improving soil health, increasing crop resilience, and stabilizing yields.

Beyond carbon, regenerative practices deliver critical co-benefits. They enhance water infiltration, reduce erosion, and support water conservation—key advantages as drought and water scarcity intensify across agricultural regions. These outcomes also strengthen rural economies by improving long-term farm productivity.

New Revenue Streams for Farmers

At a time when farmers face rising costs, climate volatility, and market uncertainty, the Microsoft-Indigo agreement delivers meaningful financial incentives. By rewarding farmers for adopting regenerative practices, the deal improves farm resilience while creating new, non-government revenue streams.

Indigo currently works with farmers across more than eight million acres and has paid $40 million through its programs to date. These payments are independent of government subsidies, offering farmers greater financial flexibility and stability.

High-Integrity Credits Meet ICVCM Core Carbon Principles

Credit integrity is a defining feature of the agreement. It is among the first soil carbon deals to include credits approved under the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles.

Indigo has issued 927,296 carbon removal and reduction credits under CAR1459 using the Climate Action Reserve’s Soil Enrichment Protocol. The company relies on peer-reviewed science, field data, remote sensing, and machine learning to measure and verify soil carbon outcomes.

To address permanence risks, Indigo has added safeguards across the 40-year durability period agreed with Microsoft, complementing the protocol’s 100-year monitoring and reversal compensation requirements.

On an end note, Meredith Reisfield, Senior Director of Policy, Partnerships, and Impact at Indigo, said:

“Microsoft’s purchase highlights the transformative power of regenerative agriculture to support watersheds, support farming communities, and advance global net-zero goals. Indigo is a proud catalyst of today’s soil carbon market, with our long-standing history of farmer collaboration and proven impact, already saving 64 billion gallons of water and issuing nearly one million tonnes of CO2e carbon removal credits since 2018.”

The post Microsoft (MSFT) Signs 2.85 Million Soil Carbon Credit Deal With Indigo in Landmark Regenerative Agriculture Move appeared first on Carbon Credits.

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eBay Maps Out Path to Net-Zero by 2045 with Science-Based Climate Plan

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eBay Maps Out Path to Net-Zero by 2045 with Science-Based Climate Plan

eBay has released its first Climate Transition Plan, outlining how the company will reduce emissions and reach net‑zero greenhouse gas (GHG) emissions by 2045. The plan covers actions across eBay’s operations and its broader business ecosystem. It also sets near‑term milestones and embeds climate action into corporate governance and planning.

The strategy was validated by the Science Based Targets initiative (SBTi), aligning it with climate science and the Paris Agreement’s 1.5°C goal.

The Climate Transition Plan reflects eBay’s commitment to sustainable commerce. It builds on years of progress in cutting emissions, scaling renewable energy, and driving circular economy practices.

The plan also shows how the company will cut emissions in its operations and value chain. This includes transportation, logistics, and the marketplace. At the same time, it aims to grow its global business.

eBay’s Climate Transition Plan: Sustainable Commerce at the Core

eBay’s Climate Transition Plan is a detailed roadmap for climate action through 2045. It identifies both climate risks and opportunities for the business. The plan focuses on four main areas: sustainable commerce, emissions reduction, governance integration, and value chain collaboration.

eBay net zero actions
Source: eBay

Sustainable Commerce

The plan emphasizes eBay’s circular marketplace model, which extends the life of products and reduces waste. This model supports resale and reuse, helping customers make more sustainable choices. The company has framed this as a way to grow while cutting environmental impact.

Clear Path to Net Zero

eBay has outlined science‑aligned pathways to reach net‑zero GHG emissions by 2045. These pathways include near-term targets for 2030 and long-term goals for 2045. The SBTi validates them to ensure they align with climate science.

Governance and Planning

Climate action is now embedded into how eBay governs and plans its business. The company has strengthened oversight by senior leadership and aligned climate goals with financial planning. eBay says this integration helps ensure climate‑related decisions influence business outcomes.

Value Chain Collaboration

eBay will partner with carriers, suppliers, policymakers, and its buyers and sellers to cut emissions beyond its own operations. The focus is on expanding low-carbon delivery options. It also aims to reduce emissions from shipping and logistics.

eBay’s Net Zero Targets: 2030 Milestones and Beyond

eBay’s climate goals cover both emissions cuts and long‑term net‑zero targets. These goals are science‑based and validated by the Science-Based Targets initiative. This validation shows that the targets match the reductions needed. They aim to keep global warming below 1.5°C above pre-industrial levels, which aligns with the Paris Agreement.

Net‑Zero by 2045: eBay has committed to achieving net‑zero GHG emissions across its entire value chain by 2045. This means cutting total emissions by 90% from 2019 levels. Also, we will use strong, lasting carbon removals to offset any emissions left between 2030 and 2045.

2030 Near‑Term Targets: To support the long‑term net‑zero goal, eBay set interim targets for 2030:

  • Reduce absolute Scope 1 and 2 emissions by 90% compared with 2019.
  • Reduce Scope 3 emissions from downstream transportation and distribution by 27.5% compared with 2019.

Progress to Date: eBay has already achieved significant cuts in operational emissions:

eBay emission reductions scope 1 and 2
Source: eBay
  • The company has achieved a 92% reduction in Scope 1 and 2 emissions relative to 2019.
  • It has reached 100% renewable electricity for all offices, data centers, and authentication centers ahead of its original 2025 target.
eBay Electricity Supply from Renewable Energy Sources
Source: eBay
  • Downstream transportation and distribution emissions have fallen 21% compared with 2019, moving toward the 27.5% 2030 target.

These results show that eBay is ahead in some areas and making progress in others as it works toward its future climate goals.

Scope 3 Challenges: The largest portion of eBay’s emissions comes from Scope 3, particularly shipping. Shipping accounts for almost 84% of Scope 3 emissions, making it the toughest category to decarbonize. eBay is focusing on partnerships with carriers and low‑carbon options to reduce these emissions over time.

eBay carbon emissions 2024
Source: eBay

eBay’s Broader Sustainability Initiatives

eBay goes beyond reducing greenhouse gases. It takes various sustainability steps that link climate goals to its business strategy.

  • Renewable Energy

eBay achieved its goal of sourcing 100% renewable energy for its operations in 2024, one year ahead of schedule. This renewable energy covers electricity for offices, data centers, and related facilities.

  • Circular Economy and Recommerce

eBay focuses on recommerce. This means used and refurbished goods are bought and sold. In 2024, this recommerce activity:

    • Generated about $5 billion in positive economic impact.
    • Helped avoid 1.6 million metric tons of carbon emissions.
    • Prevented 70,000 metric tons of waste. These figures show how extending product life can reduce environmental impact.

eBay aims to build on these results by encouraging resale and reuse as mainstream shopping choices. The company views a circular business model as a climate tool and a way to create value for its users.

  • Tracking and Transparency

eBay tracks its environmental performance through frameworks like the Task Force on Climate‑Related Financial Disclosures (TCFD). It also takes part in the CDP Corporate Questionnaire.

These actions help ensure the e-commerce’s transparency and accountability in climate reporting.

Leading by Example

eBay’s climate goals align it with other tech and retail companies. They have set science-based net-zero targets and interim reduction goals. For example, other e‑commerce and tech firms like Amazon and Alibaba have also set long‑term climate targets. However, their timelines and scopes differ.

Validating targets through the SBTi adds credibility and aligns eBay with companies that aim to match the most ambitious climate science benchmarks. The SBTi’s validation process makes sure that reduction goals are clear. They follow a framework that aims to keep global temperature rise to 1.5°C.

In addition, eBay’s focus on shipping emissions highlights a common challenge for online retail platforms. Many companies are exploring low-carbon logistics. They are using consolidated delivery, local pickup, and shifting modes, like moving from air to ground transport. These steps help cut supply chain emissions.

eBay GHG Emissions by Category, 2024
Source: eBay

eBay focuses on circular commerce and sustainable logistics in its transition plan. This aligns environmental efforts with business trends that value resource efficiency and low-carbon operations.

Low-Carbon Innovation for the Future

eBay’s Climate Transition Plan sets a clear and science‑based path to net‑zero GHG emissions by 2045. The plan includes near‑term and long‑term targets that have been validated by the Science Based Targets initiative.

The e-commerce company has already achieved major milestones, such as a 92% reduction in direct emissions and 100% renewable electricity by 2024. It also continues to invest in renewable energy, promote reuse and resale, and engage partners to cut emissions across its value chain.

The plan further shows eBay’s goal to include climate action in its strategy, governance, and financial planning. It also illustrates how sustainable commerce and circular economy practices can support long‑term environmental and business goals. As shipping and logistics remain the largest emissions source, future efforts will focus on creative and low‑carbon solutions to meet eBay’s ambitious climate goals by 2045.

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