New research by the Environmental Investment Organisation (EIO), a climate change and finance think tank, shows large quantities of emissions are not being accounted for in Europe. Public disclosure of greenhouse gas emissions among the leading European companies is highly inconsistent with only just over 50% of companies correctly adopting the basic principles of greenhouse gas emissions reporting.
“As the world shifts towards a low carbon model it’s extremely important that we have access to a reliable, consistent and cross-comparable greenhouse gas emissions database on the world’s largest companies,” explains Sam Gill, CEO at the Environmental Investment Organisation.
The other key finding is that only one company in the Europe 300 Ranking fully reports emissions across its entire value chain. Scope 3 (value chain) emissions include greenhouse gas emissions from sources not owned or directly controlled by the company but over which it has influence. It includes categories such as business travel, transportation and distribution, and investments.
Sam Gill adds, “This ought to be a wakeup call for companies. Since the majority of total corporate emissions often come from Scope 3 sources, large quantities of emissions are not being accounted for. Not only could this be a source of unmeasured risk for companies but it also means we are not getting the full picture in terms of corporate emissions. This is precisely why the Carbon Rankings are designed to encourage Scope 3 disclosure.”
At a global level, EIO research shows that the level of public disclosure of greenhouse gas emissions among the world’s largest 800 companies is unacceptably poor. Only 37% of companies are reporting complete data and correctly adopting the basic principles of greenhouse gas emissions reporting. Only 21% had their data externally verified.