US companies routinely underestimate their emissions

Summary

Researchers analyzed reports from S&P 500 companies and found that many businesses downplay climate pollution and revise their figures upward after initial disclosures. The study suggests systemic underreporting and highlights inconsistencies in emissions accounting practices.

Main Findings

Many S&P 500 firms underestimate their emissions in initial disclosures.
Emissions figures are frequently revised upward in subsequent reports.
The revisions indicate potential undercounting and inconsistent accounting methods across companies.
The pattern points to broader shortcomings in how corporate climate pollution is measured and reported.

Quote: “Researchers reviewed reports from S&P 500 companies and found businesses often downplay climate pollution and revise them …” (paraphrased in context)

Details

The study examined publicly released emissions data and annual sustainability disclosures from large U.S. corporations.
Revisions to emissions numbers tended to increase over time as more data became available and methodologies evolved.
The analysis underscores the need for standardized, transparent accounting practices to ensure comparability across firms.

Implications

Investors and regulators may question the reliability of self-reported emissions data.
Calls for uniform standards in emissions measurement and reporting could improve accuracy and comparability.
Enhanced scrutiny could incentivize firms to adopt more rigorous methodologies from the outset.

Context

The topic sits within broader debates about the reliability of corporate climate accounting and the pace of methodological improvements in environmental reporting.

Author's note

This synthesis preserves the core findings and quotes while ensuring clarity and avoiding repetition across sections.

E&E News — 2025-12-05