The guidance outlines the key messages and latest understanding of scope 3 in a portfolio context. Building on our ‘Investor approaches to scope 3 discussion paper’ and informed by our working group, it lists good practice guidance for investors concerning the Net Zero Investment Framework 2.0 throughout.
Understanding value chains emissions of their portfolio is crucial for investors to mitigate financial risks linked to global climate change. Varied and complex nature of value chains across different asset sizes, sectors and business models make evaluation of a portfolio more complicated. We collaborated with scope 3 working groups to develop guidance that helps investors understand and address these emissions in their investments.
Its three key messages are:
- Asset scope 3 emissions are an essential aspect of climate change strategy for investors
- But there are a number of valid challenges that mean it is not initially easy to address
- A sector and category level approach to scope 3, based on materiality, is proposed
Explore how investors can approach scope 3 materiality and the principal categories considered the most material across various high-impact sectors. Notably, the guidance reiterates that investors will need to reflect the sectoral coverage of their own portfolios in evaluating where scope 3 is material.
