E-ledgers are a ledger-based carbon accounting approach that applies financial accounting principles, such as dual-entry, to emissions; tracking actual emissions upstream and downstream in value chains.
E-ledgers are intended to produce real-time, audit-ready emissions data at the product level, with less duplication and more accuracy than many current methods.
Most jurisdictions currently require businesses to measure and publicly report emissions using established standards such as:
GHG Protocol (Scopes 1, 2 and 3): the most widely-accepted corporate greenhouse gas accounting framework.
ISO standards and EU CSRD/ESRS: underpinning sustainability disclosures in regulated markets.
Regulators typically mandate these standards in law or compliance frameworks, whereas E-ledgers are not currently identified as a regulatory standard and remain an emerging tool.
Essentially, E-ledgers are not a recognised standard like the GHG Protocol or ISO 14064. They remain in development and require further consensus-building and regulatory adoption. E-ledgers do not currently exhibit the detailed rules, emissions factors, and technical standardisation necessary to replace established reporting systems.
However, because E-ledgers can potentially generate more granular, auditable emissions data, they could be used to improve existing reporting, particularly for Scope 3 and product lifecycle disclosures.
It is possible that ledger-style systems might eventually be part of regulatory frameworks or supply-chain transparency initiatives. Nevertheless, until such systems are accepted and mandated by regulators, E-ledgers will remain methodological innovation rather than a regulatory replacement.
Carbon reporting today requires disclosures under recognised frameworks. E-ledgers offer a new way of calculating and tracking emissions that might improve how reporting data is framed, but are not yet a regulatory standard, neither likely to eliminate the need for other forms of formal carbon reporting.
Our view is that E-ledgers are unlikely to replace mandatory carbon reporting anytime soon. They could, however, influence future reporting standards, or be used to generate higher-quality emissions data that supports existing reporting requirements.
For more information
Contact the teamView our latest insights
What You Need to Know About the IFRS ISSB Reporting Framework
Employment Related Securities: Annual Reporting
Jonathan Harvey
Senior Tax Manager
