Information for Companies

Information For Companies

Companies can improve their position in the ET Carbon Ranking Series by publicly disclosing third-party assured and Scope 1, 2 and 3 emissions for their worldwide operations, in accordance with the Greenhouse Gas Protocol.

 

    • 1. Values for Scope 1, 2 and 3 emissions should be expressed in metric tonnes of carbon dioxide equivalent (tCO2e).
    • 2. Companies should refer to the Greenhouse Gas Protocol Corporate Standard (Scope 1 and 2) and the Corporate Value Chain (Scope 3) Standard for further guidance.
    • 3. Companies should ensure that external assurance is carried out by an independent third-party using one of the assurance standards accepted by CDP/Engaged Tracking. A full list of accepted assurance standards is available here. Assurance statements should be publicly disclosed.

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How can you improve your company's position in the ET Carbon Ranking Series?

  • 1. Sign up for announcements

  • Fill out the sign up form to ensure the relevant personnel/department receive updates and announcements linked to the ET Carbon Ranking Series, including deadlines for reviewing data.
  • 2. Calculate total emissions

  • Calculate emissions data for Scope 1, 2 and 3 (tCO2e) covering 100% of worldwide emission in accordance with the Greenhouse Gas Protocol Corporate Standard (Scope 1 and 2) and the Corporate Value Chain (Scope 3) Standard. Best practice includes reporting Scope 2 market/location based values and breaking down emissions by country and business division to the most granular level possible. Provide a full explanation of the methodology used to calculate total emissions, including the level of granularity applied to calculate Scope 3 emissions for each individual category.

3. Disclose percentage coverage

  • Clearly articulate the percentage of worldwide emissions covered, e.g. Scope 1 and 2 emissions cover 95% of worldwide emissions. Estimates and extrapolated values are accepted.
  • 4. Calculate Scope 3 emissions

  • Calculate a full breakdown Scope 3 emissions, listing each of the 15 Scope 3 disclosure categories, explaining and justifying any Scope 3 disclosure categories which have not been included. The Science Based Targets Initiative provides guidance and a free tool to help companies calculate a Scope 3 emissions inventory and set reduction targets.
  • 5. Demonstrate third-party assurance

  • Ensure Scope 1, 2 and 3 emissions data is third-party assured to the highest level of assurance. To be considered assured the assurance statement must cover at least 95% of the emission inventory. Best practice would be to use a specific GHG standard such as ISO 14064-3. The latest information on verification of Scope 3 can be found on the GHG Protocol and International Organization for Standardization (ISO) websites. A full list of acceptable assurance standards is available here
  • 6. Disclose renewable energy purchases

  • Ensure that certifications relating to the purchase of renewable energy are publicly disclosed. Companies aiming for 100% renewable can join the RE100 Initiative to showcase their efforts.
  • 7. Publicly report all information

  • Publicly disclose this information in a clear and accessible manner on the company website, in the sustainability report, integrated report, annual report or across all of the sources mentioned or in a CDP questionnaire. Companies disclosing to CDP should also publicly disclose their CDP response on their own website. The only third-party reporting accepted is reported to CDP, reporting via any other third-party platforms while failing to make this information available on the company’s own website, sustainability report, integrated report or annual report is not accepted.
  • 8. Communicate reports in English

  • All materials must be reported in English in order to be considered.
  • 9. Align emissions reporting with financial year

  • Ensure that certifications relating to the purchase of renewable energy are publicly disclosed. Companies aiming for 100% renewable can join the RE100 Initiative to showcase their efforts.

Additional best practices (not currently included in the ET Carbon Ranking Series methodology)

  • 1. Publicly disclose the company’s decarbonisation pathway plans, including plans for absolute emissions reductions across 5, 10 and 15 years, including regular strategic reviews. Decarbonisation pathway plans should be science-based, and show clearly how the company plans to become carbon neutral by 2050.

  • 2. Publicly disclose the company’s climate strategy and risk management approach. Report in accordance with the information requested in the ‘Management’ and ‘Risks & Opportunities’ sections of the latest CDP Climate Change Questionnaire. In addition, companies should include information on whether or not the board of directors has received climate training. Both are recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

  • 3. Publicly disclose the company’s approach to climate scenario planning and resilience to a 2-degree transition in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Scenario analysis disclosures should include a full explanation of the assumptions and methodologies employed.

  • 4. Companies with Oil, Gas and/or Coal reserves should:

  1. a. Publicly disclose their total proved, probable and possible reserves in the appropriate unit of measurement and quantify the carbon dioxide equivalent (tCO2e) embedded in each type of fossil fuel reserves.

  2. b. Publicly disclose information on historic, current and planned capital expenditure for the development of new reserves.

  3. c. Publicly disclose the estimated oil/gas/coal price required for each project to be commercially viable.

  • 5. The Task Force on Climate-related Financial Disclosures (TCFD) also recommends that companies should publicly disclose the annual revenues generated from business lines/products that are contributing to the transition to a lower carbon, more circular and sustainable economy. Revenues should be expressed in absolute and percentage terms relative to total revenues.

  • 6. Companies should publicly disclose their lobbying activities relating to climate change policy, including how much money is spent directly by the company and indirectly through third-party lobbying groups, such as trade bodies and advocacy groups.