As New York Climate Week 2025 unfolds, the urgency of credible climate action meets a rapidly shifting global landscape. Geopolitical shifts are reshaping supply chains and investment, while new reporting rules raise the bar for transparency.  

From the Greenhouse Gas Protocol to ISO and the Science Based Target initiative, accounting and reporting standards are evolving to meet rising demands for rigour, comparability and impact. Together, they are redefining what it means for climate solutions to be not just ambitious, but also credible, measurable and aligned with a just transition.

A global mandate for decarbonisation

Decarbonisation has moved from an aspiration to a strategic necessity. As the window to meet climate targets narrows, businesses face mounting pressure. From climate disruptions that threaten supply chains, to increasing carbon prices and the reputational risks from unmanaged emissions.

Most greenhouse gas emissions (GHG) come from indirect, value-chain activities, known as Scope 3 emissions. On average, these can be over 11 times higher than direct operational emissions and, in some sectors, up to 26 times greater (CDP, 2020). Tackling them is therefore critical for addressing the climate crisis, but doing so requires adequate resources.

Mobilising capital and aligning financial flow are essential to support the transition to a green economy. Private investments play a critical role in this realignment. More investment must be channelled both into mitigation activities (e.g. high-integrity carbon reductions, insets, supply chain investments) and also into adaptation activities (e.g. investment into landscapes/jurisdictions to support resilient and productive landscapes and communities).  

Investor expectations are shaping corporate action, with a growing demand for comprehensive climate disclosure and emissions reduction across value chains. In parallel, regulators in the EU, US and other jurisdictions including the UK, Canada and Australia, are implementing mandatory disclosure frameworks that require detailed reporting of climate-related risks and the entire value-chain emissions.

But transparency alone is not enough. To make business climate action meaningful, it requires credible systems such as standards, frameworks and tools, to guide decisions and measure progress.

The case for credibility

Credible sustainability systems make a difference where it matters. They define clear environmental performances, enable the measurement and verification of GHG emissions and reductions and support transparent climate-related claims and communications. These systems can provide the framework and assurance businesses need to set science-aligned targets and track their progress over time. This helps build trust with regulators, investors, consumers and other key stakeholders.

Sustainability systems operate through a holistic lens, recognising that climate challenges are deeply interconnected with socio-economic dimensions. Effective climate action means looking beyond carbon metrics to include social factors such as equity, human rights and the resilience of local communities. By taking this integrated approach, the systems help ensure that mitigation efforts do not come at the expense of vulnerable groups such as small-scale producers. Instead, they promote inclusive transitions by supporting a more equitable base of suppliers, rather than favouring only those who are already able to meet the requirements.

Take deforestation, for example. Tackling land-use change is critical to global climate goals, and credible climate systems help guide how commodities are produced, setting robust requirements for responsible land use and verifying compliance across supply chains.  

These systems also protect the rights and livelihoods of small producers by addressing labour conditions and living income. Research shows that certification and supply chain tools can drive meaningful improvements, particularly in employment conditions and worker representation in agriculture (Krumbiegel et al., 2018; Meemken et al., 2019; Evidensia, 2024).

How ISEAL is helping to shape climate action

ISEAL is helping to shape the emerging Scope 3 landscape. Our recently revised Chain of Custody Guidance is helping to build clarity on what can be included in a company’s physical inventory and as ‘direct mitigation’. A forthcoming paper, co-published with the Value Change Initiative and launching at a New York Climate Week side event on 24 September, will further explore this guidance and its implications for climate accounting.

At the same time, the proliferation of sustainability and green claims has increased the need for credibility and consistency. In response, ISEAL developed the Sustainability Claims Good Practice Guide, setting out best practices for developing and managing claims related to certified systems. Developed through a rigorous multi-stakeholder process, the guide strengthens alignment and trust across markets and supply chains.

Further, the ISEAL Innovations Fund, supported by the Swiss State Secretariat for Economic Affairs SECO and the UK International Development from the UK government, enables sustainability systems and their partners to test innovative approaches to improve supply chain action and reporting on climate and nature. One recently concluded project saw Better Cotton build on a baseline emissions study and earlier work on GHG data collection principles. It explored how these principles can be applied more inclusively and across different systems. The project also advanced understanding of how agricultural commodity standards can contribute to credible GHG accounting, reporting, claims and farmer incentives.

Another recent project, led by the Responsible Jewellery Council (RJC) in collaboration with the Carbon Trust, developed a decarbonisation roadmap for the watch and jewellery sector. The research examined GHG emissions across each stage of jewellery production, and data availability, collection and reporting. The final report offers a practical roadmap for the sector to accelerate towards net-zero. It highlights company- and system-level actions to scale carbon measurement and reporting, cut emissions and transition to a more sustainable industry.

Through its latest call, the ISEAL Innovations Fund is inviting Expressions of Interest for projects that respond to the theme: Market mechanisms for transferring value to small-scale producers and SMEs. The details can be found here.

Building alignment at New York Climate Week

As the global climate community gathers in New York, the focus must be on creating clarity and coherence. The current landscape of climate standards and reporting initiatives is fragmented, risking confusion and inefficiency. Aligning climate target-setting, accounting and reporting systems in a technically sound and operationally feasible way provides companies with a clear pathway to decarbonisation.

Equally important is building on what already works. Market-based mechanisms and sustainability systems are delivering measurable progress across global supply chains. Rather than reinventing the wheel, we should double down on the tools and frameworks that have been tested and proven. These systems provide the infrastructure needed to scale action efficiently and transparently.

As the climate crisis deepens, the question is no longer whether companies should act but how. The answer lies in creating systems that are not only ambitious, but credible, scalable, effective and inclusive.

At ISEAL, we remain committed to advancing credible climate action and we invite our partners across business and policy to join us in that mission.