Liv Watson is the Senior Digital Advisor at Capitals Coalition and co-chair of the Carbon Call Expert Working Group. She co-founded XBRL, the open international standard for digital business reporting. Marian Van Pelt is the Senior Vice President of Climate and Clean Energy at ICF International and a Senior Fellow at the ICF Climate Center, and serves as the chair of the Carbon Call Expert Working Group.

We estimate that there is a huge gap in unreported greenhouse gas emissions across countries, ranging from 850 million to 1.33 billion tons. Note that this is in "million tons." This figure is twice the total emissions of the United States last year.

Companies tracking their own emissions face similar challenges in reporting. Most of these obstacles stem from the same fundamental issue: access to the right data.

We already have methods to accurately report these emissions and solutions to strengthen emissions accounting, thereby paving a collaborative path toward a more sustainable corporate future. Data is the main barrier to building a more reliable and robust system—whether in terms of data abundance or scarcity.

Historically, corporate emissions reporting has been driven primarily by voluntary disclosure. Recently, mandatory reporting requirements have spawned hundreds of unique tools and software designed to enable more robust data capture, management, control, and reporting processes—similar to the systems used for financial data.

Although there are more data points than ever before, discoverable data remains scarce because finding the right information at the right time is challenging. Moreover, data abundance does not always equate to high quality.

Today, much emissions data is fragmented, making it difficult for professionals to discover even with the latest greenhouse gas inventory software. This misaligned data within a vast digital ecosystem cannot support insights into a company's current or future sustainability, nor can it create a level playing field for regulation.

The good news? If managed properly, carbon emissions data is a tremendous opportunity for collective action to accelerate positive change.

The key to progress lies in interoperability—the ability to compare, share, and use information across greenhouse gas accounting and reporting systems. Better managing and sharing carbon emissions data can become a huge opportunity for collective action to accelerate positive change.

Interoperable data is the catalyst for transforming how we manage the emissions driving climate change. Through cross-sector collaboration and support from all parties, we can achieve this.

Leaders from the private sector, non-profits, and philanthropy came together to identify four constraints that, if addressed, could transform the emissions landscape. This research, conducted by Carbon Call in collaboration with prominent institutions like Microsoft and the United Nations, provides a concise outlook on current issues and future opportunities in greenhouse gas reporting.

We can move from constraints that limit corporate progress, such as "you don't have what I need" and "I don't trust you," to metadata requirements that greatly enhance transparency and accurate interpretation.

We can shift the narrative of "I can't find you" as a deficiency to discoverable data that is digital, searchable, and accessible within companies, across supply chains, and between organizations.

We can also move beyond the complaint of "I don't understand you" through intelligent digital dictionaries, ensuring terminology is clear, precise, and unambiguous.

Furthermore, investing in emissions reporting makes the global economy more resilient. If reporting is inaccurate or opaque, corporate investment decisions that fail to account for environmental and climate matters could be misled. Such a blind investment environment may channel funds toward unsustainable activities, thereby exacerbating climate change.

Interoperable data can greatly improve how we allocate our financial resources. Moreover, because information is easily accessible, data also brings users the added benefit of cost savings.

Data fragmentation can lead corporate executives to delay investments or even make low-impact investment decisions. Companies more inclined toward "greenwashing" or superficial actions may exploit gaps in data availability.

More consistent data can inspire holistic change rather than piecemeal progress. Interoperable data is a key piece of the puzzle, fostering greater corporate collaboration in addressing climate change and helping companies navigate new compliance regulations with approaching deadlines.

Some companies have been caught off guard by the speed of mandatory reporting requirements from regulators. This wave of new emissions mandates may be the first time regulators have led the private sector in climate action.

A recent California bill requires companies to report Scope 3 carbon emissions, similar to Japanese federal law and EU policy. Although the proliferation of carbon accounting laws encourages action, companies like Walmart are concerned about the compliance costs of new Scope 3 mandates, which could reach as high as $500,000.

Corporate supply chains can be extremely complex. Tackling Scope 3, which is harder to influence in a globalized world, is equally tricky. Solving this complex puzzle requires companies to collectively address problems, making data more discoverable and thereby more cost-effective.

Only interoperable data can drive the entire carbon accounting ecosystem to keep pace with the speed of progress. While individual actions yield incremental gains, collaborative efforts create meaningful corporate change.