To Incentivize Companies to Address Climate Change, Measure Their Broader Impact.

The article discusses the need to incentivize companies to address climate change by measuring their broader impact. The current carbon compliance regime focuses on evaluating companies' ability to reduce their carbon emissions inventory, but it fails to recognize systemic efforts and wider climate impacts. The authors propose a new approach that recognizes and rewards companies for their societal-level climate solutions, such as developing low-carbon products, making sustainable investments, and advocating for climate policies. This approach can mobilize creative and influential individuals within companies and appeal to entrepreneurs in developing markets. However, there is a risk of greenwashing, so guidance is needed to ensure credible claims of impact. [Extracted from the article]