Chart of the (Climate) Week: Low Carbon Intensity Is Correlated With Higher Returns

 

https://justcapital.com/news/chart-of-the-climate-week-low-carbon-intensity-is-correlated-with-higher-returns/

 

While this picture is certainly encouraging, more needs to be done: Scope 1 and 2 GHG emissions tend to be a smaller part of overall GHG emissions for many companies (scope 3 emissions typically comprise a larger part). However, disclosure and reporting for these value chain emissions is still lacking, even though there are a few notable pledges from companies, like BP, that include them. Companies should use the opportunity that climate week represents to consider extending their engagement on limiting their carbon emissions across their whole value chain. As our research shows, there don’t have to be negative impacts on their valuation – in contrast, with the risk of carbon taxation looming, proactive reduction might prove to be beneficial in the long run.