Follow us on Twitter
Log In | Sign Up

ESG Investing

Main Menu

  • Home
  • All News
    • All ESG News
    • Research
    • ESG Reports
  • Training
  • Awards
    • Investing
    • Reporting
  • Advisory
  • Exchange
  • Contact

40% of climate warming from listed companies

ESG Investing Wednesday 27 October 2021 08:03 GMT

Listed companies are responsible for 40% of all climate-warming emissions, according to new research from Generation Investment Management.

The research shows that all previous estimates underplay the true impact that listed companies have on climate-warming emissions.  It takes into account Scope 1, 2 and some types of Scope 3 emissions like supply chain impact. The research also seeks to eliminate the problem of double counting emissions.

Most previous estimates focus on direct emissions only (known as Scope 1 emissions) and estimate listed companies’ emissions at around 20% of the total. Generation’s analysis, which incorporates listed companies’ value chain GHG emissions, estimates almost double the Scope 1 results, based on CDP data. Similarly, it is more than double the Scope 1-only calculation published recently by MSCI.

For example, the Generation analysis includes oil produced by listed global oil majors that is consumed by households and smaller non-listed enterprises, as well as the oil consumed in vehicles manufactured by listed companies. The problem of double counting is accounted for in the research.

The analysis also considers emissions from food production and changes in land use which are largely absent from Scope 1 estimates, because most food is produced by smallholder farmers, larger independent farmers and cooperatives or by privately owned companies.

Even with these additional factors included, Generation say their estimates are likely to be conservative. For example, the analysis excluded emissions where double counting was too difficult to address and where sufficient, reliable data was not available from public sources. Future research will expand the methodology to cover other ways listed companies contribute to global GHG emissions.

Read more at: www.generationim.com

Categories

Climate

Companies

ESG & Sustainability Reports

ESG Research

Funds

Vendors

About ESG Investing

ESG Investing is the leading global media platform publishing news and features on ESG and sustainable investing for fund managers, institutional investors and listed companies. ESG Investing is a division of Global Markets Media Ltd.

Get in Touch

ESG Investing, Global Markets Media T: +44 (0)1483 573150
E:info@esginvesting.co.uk
A:
ESG Investing
Global Markets Media Ltd
96 High Street
Guildford
GU1 3HE, UK
Copyright © 2022 Global Markets Media

Footer Menu

  • Cookies
  • Disclaimer
Design by Web Design London
7ads6x98y
This website uses cookies to store information on your computer. See our cookie policy for details on how to block cookies.
I am happy to proceed