Zug/Zurich, 3 November 2020 – SUSI Partners has published an opinion paper discussing the role of greenhouse gas (GHG) reporting on the path towards a net-zero emissions economy. The paper emphasises the urgency of climate action, examines currently available reporting methodologies, and elaborates on the role that reporting of avoided emissions can play in directing capital towards sustainable investments.
Representatives from almost 200 countries are currently assembled in Glasgow to discuss the way forward in addressing the fundamental challenge of creating a net-zero GHG emissions economy in order to prevent the grave consequences of global warming. Meanwhile, the redirection of capital from the fossil towards a green economy is progressing, albeit at a clearly insufficient pace to meet the targets set forth in the 2015 Paris Agreement. Addressing the issue, SUSI Partners’ opinion paper focusses on GHG reporting standards as a critical requirement for the financial sector in driving the creation of a sustainable economy.
GHG reporting supports asset owners in assessing the impact of their investments on the climate and ideally functions as a catalyst to drive more capital towards a net-zero future. However, at the time of publication, there is no globally accepted understanding on how GHG emissions, including avoided emissions should be reported.
SUSI’s opinion paper aims to make a contribution towards the development of a widely accepted GHG reporting standard, providing the perspective of a fund manager specialised in sustainable energy infrastructure. It emphasises the urgency of climate action, discusses currently available reporting methodologies, in particular the Partnership for Carbon Accounting Financials’ (PCAF) guidelines, and finally examines the role that reporting of avoided emissions can play in directing capital to where it is most urgently needed.
Raphaela Schmid, Vice President, Sustainable Investing, comments: “We look forward to engaging with the broader investment community on the topics touched upon in this paper, in the interest of better aligned and ultimately more effective climate action.”
Request a copy of the paper here