Más contenido relacionado

Similar a Workshop on Metrics for Climate Transition - PPT Nico Fettes(20)

Más de OECD Environment(20)


Workshop on Metrics for Climate Transition - PPT Nico Fettes

  1. 1 OECD Workshop on Metrics for Climate Transition and Net-Zero, Session 1: Metrics and indicators supporting net zero for different financial assets Title: How can we credibly measure the climate performance of companies? - A CDP approach Presenter: Nico Fettes, Head of Product Development Capital Markets, CDP Europe. Paris, 22 February 2023
  2. 2 About CDP NON-PROFIT COLLECTING ENVIRONMENTAL DATA Environmental data collection Environmental data Companies & Financial institutions Financial institutions & Purchasing organisations Environmental data Disclosure request Authority  Collecting climate-related data from companies since 2003  Over 700 institutional investors support our work.  In 2022, over 18,000 companies disclosed environmental data through CDP  Largest database of self- reported environmental data
  3. 3 Measuring climate performance We produce key outputs at company-level 1. Target ambition metrics (forward-looking) Emissions reduction target ambition in °C 2. Transition plan metrics (present) Transition plan elements disclosure 3. Emissions metrics (backward-looking) Emissions disclosure + Trajectory in °C to satisfy the requirements of portfolio target setting frameworks (SBTi, NZIF)… and to enable company dialogue on disclosure and climate action. Three complimentary categories of metrics
  4. 4 Simplified example Target ambition • Gross ambition: 50% • Boundary coverage: 70% • Net ambition: 35% • Climate benchmark: IPCC heavy industry Transition plan disclosure • Board oversight • Management incentives • Scenario analysis • CapEx alignment • … • … Emissions trend • Disclosure completeness: 90% • Trend quality: 75% • Projected short term growth rate: -3.5% Outputs at company-level > 2 °C 60% < 2 °C End-user to determine final degree of alignment – Red flags point to weaknesses in disclosure
  5. 5 Opportunities, challenges and greenwashing risks Opportunities Challenges How to manage greenwashing risks Target ambition metrics Forward-looking; Granular data available; Greenwashing risks Detailed target boundary coverage check; Combine with other metrics Transition plan metrics Holistic Lack of standards and benchmarks Develop benchmarks; Conduct qualitative analysis Emissions (trend) metrics Based on actuals Volatility & data gaps; lack of domain knowledge Data cleaning / modelling; Apply threshold criteria
  6. 6 Can we credibly measure climate performance?  Yes (with lots of hard work) but not for all companies in global portfolios  Greenwashing risks inherent in self-disclosed data need to be managed → How can we better understand the true climate motivation of corporate leaders?  Forward-looking measurement will always require qualitative analysis → Do we need an industry for “analyst views” on climate impact?