Georgeson’s “Setting and addressing corporate climate goals” provides an overview of the core concepts and terminology used in relation to climate emissions reporting and goal-setting with reference to the Intergovernmental Panel on Climate Change, Science Based Targets initiative (SBTi), GHG Protocol and the CDP.
In addition to “net zero,” “carbon-neutral,” Scopes 1, 2, and 3 GHG emissions, and other core concepts, the piece provides an example of how reported emissions may differ depending on which of the alternative Greenhouse Gas Protocol methodologies companies elect to use for reporting purposes.
Contrary to the GHG Protocol, the SEC’s new climate disclosure proposal would require all companies to report their emissions based on the same scope of entities, operations, assets, and other holdings and accounting principles applicable to their consolidated financial statements and their share of emissions based on percentage ownership from proportionally consolidated equity investees or operations (p 194).
See these helpful resources on our Sustainability page: “The ABCs of ESG: Initiatives and Organizations Issuers Should Understand” (Georgeson); “The Book of Jargon - Environmental, Social & Governance” (Latham & Watkins); and “ESG Terminology and Topics Commonly Covered Within E - S - G” (Paul Weiss), as well as the Basic Resources posted on our Climate Risk & Disclosure page.
This post first appeared in the weekly Society Alert!