What is the start of a credible Net Zero transition plan?

To create a credible and legally defensible net zero transition plan, it is important to inventory all material greenhouse gas emissions, use eco-efficiency processes and systems, set science-based emission reduction targets, and have a clear business strategy and model.

How much financial risk do business models and investment portfolios face when stress tested for the coming carbon shock?

Every sector when carbon shock stress tested had business models with a material negative financial impact on their carbon adjusted return on capital (CAROC) performance. 

Do we need to change our board approved strategic plan?

About 90% of companies will be required to analyze their current business model risks and change their current “Board Approved” Business Strategy.

Can’t we get to a Net Zero business model by using 100% Renewable Energy Credits (RECs)?

Although the use of RECs and Power Purchase Agreements (PPAs) have helped to accelerate the transition away from fossil fuel generated electrical power towards 100% carbon free energy, they will not be permitted longer-term by the largest institutional investors or bond rating agencies.

Can’t we just follow the key sustainability and climate change guidance frameworks for measurement, reporting and disclosure?

The climate and net zero frameworks provided by various organizations are insufficient as they focus solely on carbon and global temperature. They do not take into account business strategy, model transformation, or Enterprise Value (EV) creation.

Do companies need to report and disclose Scope 3 emissions?

As concerns around climate change rise, so does the expectation that businesses accurately report their environmental impacts. Scope 3 GHG (greenhouse gas) and carbon emissions are now part of the material information that companies must provide.