How to Make Sustainability Claims That Hold Up in Due Diligence

A company reports that its emissions fell 20%. The figure goes into an investor deck, a sales presentation and the CEO’s next interview.

Before any of those audiences can judge the result, they need to know what was counted. Did the reduction cover the whole value chain? Did the company sell a factory? Did electricity consumption fall, or did the accounting change after a renewable energy purchase?

These details determine what the company can credibly say. They also explain why sustainability frameworks deserve closer attention from the people responsible for commercial and investor communications.

For climate-related claims, GHG Protocol supplies emissions accounting standards, SBTi sets standards for science-based targets, and IFRS S2 sets requirements for climate-related financial disclosure. Each establishes a different part of the evidence behind a business narrative.

1. GHG Protocol establishes what the emissions figure includes

The GHG Protocol Corporate Standard provides the accounting foundation for a corporate emissions inventory. Companies select an organizational boundary using equity share or a control approach, then identify the emissions associated with the activities inside that boundary. Those choices affect the resulting number.

A claim about progress also needs a consistent comparison. Significant acquisitions, divestments or methodology changes can trigger recalculation of base-year emissions. A factory sale can lower a company’s reported footprint while the factory continues operating under another owner.

Electricity introduces another distinction. Location-based Scope 2 accounting uses average emissions factors for the relevant electricity grids. Market-based accounting reflects qualifying contractual instruments and supplier information. Companies operating where those instruments are available report both under the Scope 2 Guidance. A lower market-based result, by itself, does not establish that electricity consumption fell.

Comparisons with competitors deserve particular care. GHG Protocol says its Scope 3 Standard is designed to track an individual company’s emissions over time. Valid comparisons between companies require additional consistency in methods, data and performance measures. A lower disclosed total alone is a weak basis for claiming sector leadership.

2. SBTi establishes the target being pursued

SBTi Services assesses corporate climate targets against the Science Based Targets initiative’s standards and methodologies. That validation gives an audience a defined benchmark against which to examine a company’s ambition.

The exact target matters: its base year, target year, scopes, coverage and whether it measures absolute emissions or emissions intensity. An intensity target relates emissions to a denominator, such as output; absolute emissions can rise while that ratio improves.

Target validation also has a precise limit. SBTi’s public dashboard states that validation offers no assurance that a company will achieve its target or is currently on track. Broader sustainability claims extend beyond what an emissions target establishes.

A useful investor update therefore pairs the validated target with actual performance, the remaining reduction required and the operational decisions intended to deliver it. Readers should be able to distinguish the target, the implementation plan and the results already achieved.

Version control now matters, too. As of October 8, 2026, SBTi has published Corporate Net-Zero Standard Version 2.0, with target validation scheduled to open on February 1, 2027. Version 1.3.1 remains the submission route during 2026. Any claim of alignment should identify the applicable version and validation status.

3. IFRS S2 connects climate information to the business

IFRS S2 focuses on climate-related risks and opportunities that could reasonably affect cash flows, access to finance or the cost of capital over the short, medium or long term. Its disclosure requirements address governance, strategy, risk management, and metrics and targets.

For a communications team, this creates a practical question: what does the climate information help the reader understand about the business?

A manufacturer might need to explain its exposure to electricity prices, the capital required to replace equipment, or the reliability of suppliers facing physical climate risks. These are different questions from how many tonnes of greenhouse gases appear in its inventory.

The connection needs evidence. A claimed margin benefit needs operating and financial assumptions. A claim of stronger resilience needs an explanation of the risk, the assets exposed and the response. A declining footprint alone cannot establish either conclusion.

Applying IFRS S2 also requires attention to jurisdiction and reporting requirements. The existence of an international standard does not create a universal legal obligation; companies can also apply ISSB standards voluntarily.

4. What a 20% reduction can mean in practice

Consider a hypothetical manufacturer with a base-year inventory of 10,000 tonnes of CO2-equivalent:

In the following year, the first subtotal falls to 1,600 tonnes and Scope 3 remains at 8,000. Assume consistent boundaries and calculation methods, with no relevant exclusions or restatements.

The company’s Scope 1 and market-based Scope 2 subtotal has fallen 20%. Its total inventory, calculated on the same basis, has fallen 4%, from 10,000 to 9,600 tonnes.

The next sentences should explain the underlying actions and link to the inventory. Any statement about target progress must use the actual target boundary. Any statement about financial benefit needs separate supporting analysis.

That explanation gives investors and customers a clearer view of both the achievement and the work remaining.

5. Build the evidence before writing the headline

A simple claim record can keep sustainability, finance and communications teams working from the same facts.

Keep this record close to the draft. It makes revisions easier when a calculation changes, a target is renewed or a new reporting requirement takes effect.

For a board, investor or prospective customer, the useful narrative is the one they can interrogate. They should be able to trace a claim to a number, understand how that number was produced and see why it matters to their decision.

That is where clear sustainability communication begins.

At Sirotin Ventures, our AI-augmented strategic communications work connects technical research with the questions investors and customers actually ask. We use AI to compare sources and develop drafts, then check whether the evidence supports the argument. If your sustainability work needs to stand up to closer scrutiny, let’s talk: angelica@sirotinventures.com.