case study: benchmarking review for major bank
What emissions are companies actually reporting on? Are their net zero goals validated?
at a glance
challenges
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No standard method of reporting emissions.
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No standard Net Zero reporting scheme.
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ESG ratings agencies used by the bank did not provide details and scrutiny.
outcomes
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Comprehensive comparison of what companies are actually doing.
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Provision of standardised set of ESG data for use.
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Tabulated, simple-to-communicate overview of validated reporting and goals.
“sustain:able enabled us to see through the jargon and mixed methods of reporting...to be able to evaluate the companies of interest on a level playing field...comparing like-for-like data”
client rep
objectives
A major lender wanted a detailed overview of how the companies in their portfolio, and those outside, were reporting on their emissions.
The main objective was to see how companies stacked up to their peers with regards to ESG and emissions.
Key questions raised included:
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How do the companies report on emissions - which scopes, which methods, which sources?
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Does the company claim to align with the Paris Agreement? Is this valid?
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Is the Net Zero ambition defendable?
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Are their reduction plans validated?
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What are the opportunities for improvement?
steps taken
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Assessed each company at a high level for emissions and Net Zero public statements - what do they say publicly?
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Interrogation of emissions reporting and claims
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Methodology followed
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Units utilised
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Emissions sources included and excluded
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Net Zero / reduction planning review
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Has the company thought through how they will reduce emissions?
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Are the options valid and achievable?
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Can the claims be validated?
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results
clear comparison across companies
Data assessed to enable standardisation of emissions metrics across the companies to enable fair comparison of both reported numbers and goals.
provision of independent advice
Utilising the technical expertise and independent view of the sustain:able team removes any bias from the results.