The 100% Club, a joint academic and industry initiative, is calling on companies worldwide to disclose 100% of their greenhouse gas emissions.
The club says the failure of corporations to fully disclose their emissions makes it impossible to fully understand the impact they are having on climate change.
Charles Donovan, director of the centre for climate finance and investment at Imperial College Business School said: “Just as investors rely on accurate and complete financial reporting, getting the full picture on emissions is a crucial first step in getting to grips with climate-related risks.”
He added that investors and stakeholders are increasingly calling for greater transparency on climate issues. He said: “Companies are under increased pressure from stakeholders to disclose their approach to climate risk. But if the underlying data isn’t up to scratch, then even the most sophisticated and robust risk management framework is rendered useless. Disclosures, of the quality expected by the 100% Club, are a crucial part of climate-risk management. Companies need to rise to the challenge.”
The 100% Club, which officially launches in Ireland this week, seeks to address the issue by recognising firms that report 100% of their greenhouse gas emissions. With the aim of expanding its membership base, it is encouraging companies to join the club and commit to 100% of greenhouse gas emissions reporting.
The club supports the UN-backed Financial Centres for Sustainability (FC4S) initiative – which mobilises global financial centres to implement the Paris Agreement on climate change – by assessing the authenticity of corporate claims of “greenness.”
Spearheading the venture are leading academic institutions Imperial College London Business School and UCD Michael Smurfit Graduate Business School, Climate-KIC (the EU’s main climate innovation initiative), and Sustainable Nation Ireland.
The new initiative follows the publication of a landmark report by the UN Intergovernmental Panel on Climate Change last month, which warns that we have only a dozen years for global warming to be kept to a maximum of 1.5C.
The 100% Club says the current lack of full emissions disclosures makes it impossible to understand the impact that any one company is having on climate change. It also has the potential to mislead investors and hinder the progress of country, investor and business initiatives to address climate change and accelerate the transition to a low-carbon economy.
The club challenges companies around the world to step up their efforts and commit to disclosing 100% of their Scope 1 greenhouse gas emissions over the last 12 months.
Scope 1 emissions are direct emissions from owned or controlled sources. While thousands of firms report a number for their Scope 1 emissions, only 20 firms worldwide have provided disclosures that meet the 100% Club criteria. These are Abbvie, Adidas, Aviva, Beni Stabili, Cofinimmo, Deutsche Bank, Equinor, Fiat Chrysler, Henkel, IRPC, KGHM, Microsoft, Norske Skog, Northern Trust, Royal Dutch Shell, Safestore Holdings, Saipem, Tokio Marine, Unibail-Rodamco, and Verisk Analytics.
The 100% Club seeks to provide new incentives for companies to pursue complete disclosure. It says that 100% transparency will enable better decision-making and help to guide capital to companies that are actively addressing their impact on climate change.
Professor Andreas G. F. Hoepner, member of the EU’s Technical Expert Group on Sustainable Finance and founding partner of the 100% Club, said: “Many people may be surprised how few companies we can independently confirm to have reported 100% of their Scope 1 greenhouse gas emissions. Yet, to provide asset owners any chance of aligning their portfolios with climate goals scenarios and responding thoroughly to Taskforce on Climate-related Financial Disclosures, it is paramount that the vast majority of corporations listed on equity or bond markets take complete and public accountability of their Scope 1 emissions.”
To show your support for the 100% Club follow #MissionFinance.