Aligning corporate carbon accounting with natural climate solutions in Southeast Asia

• Published in: Environmental development 2023-03, Vol.45, p.100805, Article 100805
• Main Authors: Keat-Chuan Ng, Casey, Webber, Darrel
• Format: Article
• Language: English
• Subjects: Carbon offset; Climate change; Corporate responsibility; Environment economics; Sustainability report
• ISSN: 2211-4645
• DOI: 10.1016/j.envdev.2023.100805

There is a growing global trend of environmental, social and governance (ESG) reporting to promote business transparency. In Southeast Asia, the Global Reporting Initiative (GRI) Standards 305 is popularly adopted by public-listed companies for greenhouse gas (GHG) emission reporting. However, mitigation actions that link corporate GHG emission to Natural Climate Solution (NCS) through tropical forest conservation are relatively absent in the region. This discussion paper explores how the gap can be reconciled. We use the “what if” predictive argument to discuss NCS potential worth USD1,529.8 billion in Southeast Asia. The key strength of the company-led NCS (CNCS) approach is flexibility that considers niche tropical ecosystems, ecological co-benefits and business operation variability. The “bottom-up” option is likely better received as stakeholders will have better control of the finances, scale, pace, governance and transparency. Though this discussion paper deals mainly with Southeast Asia, the principles are universal and provides insights for furthering conversation around decarbonizing the global economy. •Carbon capture by forestry is not fully realized in Southeast Asia.•Public-listed companies can aid climate change mitigation.•GHG reporting practices can drive and track company-led initiatives.•Companies are more attracted to GHG offset projects when there is flexibility, transparency and co-benefits.