How can businesses apply consumption-based emissions accounting?

Businesses can apply consumption-based emissions accounting by tracking their supply chain emissions because this approach allows them to understand the carbon footprint associated with the products and services they provide, from the extraction of raw materials all the way through to final consumption. By identifying the emissions that occur at each stage of their supply chain, businesses can gain insights into where the highest emissions are generated, which can inform targeted strategies for reducing their overall environmental impact.

This method aligns with sustainability practices as it encourages businesses to work closely with suppliers and manufacturers to promote more efficient processes, adopt cleaner technologies, and improve practices that contribute to lower emissions. In contrast, options that focus on minimizing production waste or altering product pricing, while potentially beneficial for business efficiency or market positioning, do not directly address the comprehensive measurement and reduction of emissions throughout the entire consumption cycle. Reducing jobs in manufacturing may adversely affect a company's operation and does not contribute to sustainable practices or emissions accountability.