OECD

The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental organisation that develops economic, social and environmental policy. Founded in 1961, it brings together 38 member countries that work to promote sustainable economic growth, trade and financial stability. Its influence extends well beyond economics: the OECD plays an important role in climate change mitigation and in the data and methods used to understand emissions.

What is the OECD and what are its objectives?

The OECD unites advanced and emerging economies to coordinate public policy across areas such as the economy, education, health and the environment. Its core mission is to promote policies that improve economic and social wellbeing worldwide. Key objectives include:

• Promoting sustainable economic growth.
• Encouraging fair and open international trade.
• Advancing inclusive social policies.
• Addressing global challenges such as climate change and inequality.

In the environmental field, the OECD provides data, analysis and policy recommendations that help countries design strategies to reduce greenhouse gas (GHG) emissions and meet the goals of the Paris Agreement.

The OECD's role in sustainability and climate change

Through its Environment Directorate, the OECD conducts research and develops tools that help governments and businesses adopt more sustainable practices. Its main focus areas include:

• Supporting the transition to low-carbon economies.
• Designing carbon pricing and other market-based mechanisms.
• Promoting investment in renewable energy.
• Developing climate adaptation policies.

On 26 November 2025 the OECD published its Environmental Outlook on the Triple Planetary Crisis, covering climate change, biodiversity loss and pollution together.

The OECD Guidelines for Multinational Enterprises

The OECD is also known for its Guidelines for Multinational Enterprises on Responsible Business Conduct, a leading reference for corporate due diligence on human rights, the environment and governance. A major update approved in June 2023 strengthened due diligence expectations and gave climate change and biodiversity a more explicit place. The Guidelines, and the related OECD Due Diligence Guidance, inform responsible-business expectations and frameworks such as the UN Global Compact.

They should not be confused with binding law: the Guidelines are voluntary recommendations, whereas in the European Union mandatory due diligence comes through the Corporate Sustainability Due Diligence Directive (CSDDD), which after the Omnibus package applies uniformly from 26 July 2029 and only to companies with more than 1.5 billion euros in turnover and 5,000 or more employees.

The OECD and carbon footprint data

The OECD does not publish a measurement protocol like the GHG Protocol, but it provides statistics, indicators and frameworks that help countries and companies understand and compare emissions. It works with other international institutions to harmonise methodologies and improve the comparability of data across sectors and regions.

The OECD and carbon pricing

One of the OECD's most significant contributions to climate policy is its work on carbon pricing, including carbon taxes and links to emissions trading systems. Putting a price on GHG emissions encourages businesses and consumers to cut fossil-fuel use and adopt cleaner alternatives. According to the OECD, well-designed carbon pricing can reduce emissions while generating revenue that can be reinvested in decarbonisation or used to ease the social impacts of the energy transition.

How businesses can align with OECD recommendations

For companies, aligning with OECD recommendations supports both responsible conduct and competitiveness. Key actions include:

• Measuring and reporting their carbon footprint.
• Setting science-based emissions-reduction targets.
• Adopting circular economy practices to minimise waste and improve efficiency.
• Collaborating with governments and industry partners on sustainability.

At Manglai we help companies measure their carbon footprint and prepare their sustainability reporting in line with international standards. Discover Manglai's carbon footprint software.