Environmental group CDP has launched a temperature ratings system for investors to track carbon emissions of some 4000 companies.
In a statement, Laurent Babikian, Director Capital Markets at CDP Europe said,”Investors increasingly want to align their portfolios with international climate goals and the economy of the future. By providing a clear, science-based and uniform standard for companies’ ambition, CDP temperature ratings now allow investors to do that by benchmarking, communicating and reducing the temperature of their portfolios and products.”
CDP says data is based on an assessment of a company’s emission-reduction targets, as reported to CDP every year, converted into a temperature rating. The data would provide insight to the full range of emissions from a company including Scope 3 emissions from a company’s products.