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A Smarter Way to Measure GHG Emissions?

The Winners of the HBR McKinsey Award Explain.

“Accounting for Climate Change,” the first Harvard Business Review (HBR) article written by our co-founders introducing the E-liability accounting method, went on to win the 2022 HBR-McKinsey Award for “groundbreaking management thinking”, which in turn kicked off a series of pilot adoptions of the method by organizations around the world. This McKinsey piece highlights how their winning article proposes a breakthrough approach to measuring greenhouse gas emissions, using foundational cost accounting logic to assign emissions individual products across supply chains.

McKinsey & Company

April 2022

MediaAnnouncement E-ledgers Method
Accounting for Climate Change

The first rigorous approach to ESG reporting

by Robert S. Kaplan and Karthik Ramanna

The E-liability accounting system was introduced as the first rigorous approach to ESG reporting in an article co-authored by Professors Robert Kaplan and Karthik Ramanna and published in the Harvard Business Review (HBR). The article provides a detailed method for assigning “E-liabilities” across an entire value chain, and uses the example of a car-door manufacturer to demonstrate how this may work in practice. The article went on to win the 2022 HBR-McKinsey Award for “groundbreaking management thinking,” which in turn kicked off a series of pilot adoptions of the method by organizations around the world.

Harvard Business Review

November-December 2021

PublicationE-ledgers Method

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