A report by GMO says that scope 1 and 2 emissions account for only 18% of total corporate greenhouse gas emissions.
The report, by the firm’s systematic equity team, says that global stakeholders need to do more to address the risk of global warming, and that investors have focused too much on scope 1 and scope 2 emissions because they are easier to measure. Since both data quality and reporting inconsistency make reported scope 3 unsuitable for portfolio management, investors aiming to align with Net Zero face a significant challenge.
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