DitchCarbon’s emissions score is a comprehensive framework designed to assess a company’s actions and commitment towards climate change mitigation. The scoring system considers various factors that collectively provide a detailed picture of a company’s environmental impact and its efforts to reduce it. Here’s a summary of the key factors considered in the assessment:
1. Industry Classification: This factor evaluates the inherent environmental impact of a company based on its industry. Industries are categorized based on their emission levels, ranging from very heavy to very light emitters. Companies in heavier emitting sectors receive negative scores, reflecting the greater inherent environmental impact, while those in lighter emitting sectors receive positive scores.
2. Emissions Reporting: This aspect assesses the company’s transparency in reporting greenhouse gas emissions. It includes the reporting of Scope 1, 2, and 3 emissions over the past three years. Consistent reporting across these scopes, especially for the most recent years, is rewarded with higher scores, emphasizing the importance of transparency in environmental accountability.
3. Initiatives: This category evaluates the company’s participation in global and strategic initiatives aimed at reducing emissions. It includes adherence to Science-Based Targets (short or long-term), setting net-zero targets or aligning with a 1.5°C business ambition, and participation in the UN Global Compact. Active participation in these initiatives indicates a strong commitment to climate action.
4. Emission Reduction: This factor measures the company’s performance in reducing Scope 1, 2, and 3 emissions. Reductions in these scopes are positively scored, while increases are penalized. This directly ties the company’s score to its effectiveness in reducing its carbon footprint.
5. Reporting Relevance: This assesses the relevance and comprehensiveness of the company’s emissions reporting. Companies that report all relevant Scope 3 categories, as per their industry criteria, for the past three years are scored positively. This factor ensures that companies are not only transparent but also thorough in their reporting.
In summary, DitchCarbon’s emissions score provides a multi-dimensional evaluation of a company’s environmental impact and its efforts towards sustainability. By considering industry-specific impacts, transparency in reporting, active participation in global initiatives, actual emission reductions, and the relevance of reporting, this scoring system offers a robust and comprehensive assessment of a company’s action on climate change. This approach encourages companies to not only be aware of their environmental impact but also to actively engage in meaningful actions to reduce their carbon footprint.