Environmental Investment Organisation – New Carbon Ranking

The Environmental Investment Organisation (EIO) in London has published a new carbon ranking. In five major reports covering Europe’s, North America’s, Asia/Pacific’s and BRICS’s 300 as well as the Global 800 biggest companies, the British NGO sheds light (based on publicly available data) on carbon transparency and efficiency of the global business leaders. The reports venture into a new dimension of carbon reporting and for the first time take into account indirect (scope 3) emissions. Combined with the important role of reporting transparency and thanks to the all inclusive (in contrast to the traditional best-in-class) approach in the ranking methodology the environmental tracking ranking provides a much more realistic picture of the true carbon impact of industries and individual companies.

As for the political aspect of the release, there will be a series of regional and country analysis coming up, dealing with specific lessons for politicians. In general terms this initiative is highly welcomed as it gives policy makers better background data needed to determine and to legitimise the suitable course of action. It is for example obvious that overall carbon data disclosure even in the most advanced Europe region is far from satisfying and leads to a massive information deficit for investors. As a consequence politics should require companies to be more transparent so as prevent greenwashing campaigns giving shareholders and investors accurate information on the climate friendliness of their assets. Ultimately it is the markets and the companies themselves, which have to usher in change. Politics cannot change the game but absolutely should change some rules so that relevant actors are able to base their decision on more complete and verified information.

Source: Environmental Investment Organisation

Disclosure: The author works as analyst with the EIO.

One Response to Environmental Investment Organisation – New Carbon Ranking
  1. […] are the lessons for politicians? As I mentioned in the first article, it is obvious that investors as well as politicians need better emission data in order to take […]