A base year is a specific year you select as a reference point to measure and compare your company’s greenhouse gas (GHG) emissions over time. It’s essential because it provides a consistent benchmark for tracking your emissions, setting reduction targets, and assessing progress. By using a base year, you can see how your emissions change, manage risks and opportunities related to climate change, and report transparently to stakeholders, investors, and regulatory bodies. If your company undergoes significant changes like mergers or acquisitions, recalculating your base year emissions helps maintain accurate and meaningful comparisons over time.