CDP
Climate warning
Climate warning
Enablesus
154 w
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The misuse of indexing for climate mitigation goals is a recipe for global disaster
The misuse of indexing for climate mitigation goals is a recipe for global disaster. What is indexing?
📈 Indexing is when GHG emissions, or mitigation of emissions, is measured by a unit of output. Examples are CO2 per US$-of-revenue, or GDP, per-capita, car-produced, mile-driven, or kg-of-clothes…etc. Indexing does not measure net-emissions-reduction of GHG emissions, which is the actual global goal of the Paris Agreement, and what is physically needed to prevent runaway climate change.
@TheGuardian, highlights how some organizations like @CDP use it to compare the performance of companies. However, indexing is used by many companies (especially in fashion, consumer products, and automotive industries) and governments (e.g. China and India) to allow themselves to continue high financial growth, with the very real risk of actually increasing net GHG emissions.
👍 We say misuse, because indexing should not be used for setting GHG mitigation goals, or measuring impactful results. However, indexing is a great tool for regulating markets after an effective net-emissions-reduction goal is set. For example, indexing can be effectively use in carbon taxing, cap-and-trade, product-labeling...etc. when it can be adjusted in the short term to meet the net-emissions-reduction goal.
Read more in The Guardian article here: https://www.theguardian.com/environment/2022/apr/09/why-eco-conscious-fashion-brands-can-continue-to-increase-emissions
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154 w
@CDP has a lot of good initiatives that address climate change, we can all agree on that. The use of indexing can be one thing they can change to be better. The best science-based measure for corporate climate performance is net-emissions. A company can be honest and just say we have a lot of growth and that their growth exceeds our ability to reduce net-emissions, and transparently provide a goal and science based targets based on net-emissions. Why indexing (intensity) does not always work as a measure for real global reductions (or country, or company) is evidenced by the following, when indexing with revenue or GDP: BP’s emissions intensity (tCO2e/USD-revenue) as increased 41% between 2019 and 2021, this is because they had 42% higher revenues in 2019. At the same time their net-emissions has actually decreased by 18% (Scope-1, -2, -3-upstream-only). [ref. BP annual reports] China’s emissions intensity (tCO2e/GDP) has decreased 64% between 2005 and 2014, this is because of massive GDP growth of 360%. At the same time their net-emissions has increased by 65%. [ref. National GHG inventories and World Bank] Denmark’s emissions intensity (tCO2e/GDP) has decreased 43% between 2005 and 2014, this is mainly from reduced GHG emissions, as GDP growth was only 33%. At the same time their net-emissions decreased by 24%. [ref. National GHG inventories and World Bank] Calculations performed by GH Sustainability
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154 w
Hi. What do you propose to use instead? We need to compare companies in different stages. I believe that we must encourage growth for companies that are succeeded in reducing their co2 emissions in production and that are in line with the science-based targets. CDP is doing a lot to drive change in a positive direction.
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154 w
@CDP has a lot of good initiatives that address climate change, we can all agree on that. The use of indexing can be one thing they can change to be better. [See additional comment]
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154 w
We need to be sincere, committed, and transparent in our every action on this journey of climate reparation. #NoPlanetB
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154 w
it is important to use good index and indicators in order to solve the climate crisis
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154 w
Agreed, the questions is which to use for what?