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1 Refer to The GreenhouseGasProtocol for scope definitions. Together, these goals will ensure that Key not only achieves carbon neutrality, but also continues to reduce our emissions overall. To learn more about Key’s ESG efforts, read the 2021 Environment, Social, and Governance Report here.
Chevron uses the World Resources Institute/World Business Council for Sustainable Development GreenhouseGasProtocol: A Corporate Accounting and Reporting Standard (2015) definition of three “scopes” to report GHG emissions. enhancing our reporting.
There are a number of definitions of net zero and how companies can achieve it. Corporate net-zero pledges have gained significant traction as half of the world’s largest companies , representing an annual aggregate revenue of US$27 trillion, are committed to net zero. 2030 is not far away.
The widely adopted GreenhouseGasProtocol (GHG Protocol) is flexible by design, allowing users to tailor metrics to meet their specific business needs. Scope 1 and 2 are relatively straightforward to inventory given their narrow definitions and the control a company has over these emissions sources.
The company makes no representation or warranty as to these organization's use or definition of specific terms or recommendations or viability of any initiatives.
Despite the expansion of net-zero pledges in recent years, the definition of net-zero itself—as well as the path to get there—has been interpreted in different, and often inconsistent ways. The Corporate Net-Zero Standard addresses this problem by providing a clear, science-based definition of net-zero.
The greenhousegasprotocol has been around for many years and sets out a detailed process (more than 700 pages) for measuring corporate carbon footprints. There is real momentum behind the IFRS Foundation’s move to develop international "sustainability reporting" standards.
Materiality is assessed in-line with the current Securities Law definition, i.e. if a FS caption is impacted by more than 1%, there must be footnote quantitative disclosures. In addition to the above, the reporting boundary across the three standards is also different, with variation in value chain definitions.
It leaves the definition of materiality up to each company to determine, although this will likely be subject to verification by external auditors. This could enable banks or fossil fuel companies , for example, to under-report climate risks or metrics based on an argument that fossil fuels will be needed for many years to come.
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