Today is Thursday, 18 June 2024.
This is the title of a post from MSCI from May 28, 2024, written by Ben St. Laurent, Jamie Saunders and Laura Buenaventura.
“The disclosure of carbon credit use is becoming increasingly important for both companies and investors — but it is also becoming increasingly complicated”.
Have you ever thought that, as this market evolves without international consensus, there might be same emissions being compensated twice by two companies within the same value chain?
A situation like this becomes relevant when dealing with Scope 3 emissions, specially after rumours that came out from Science Based Targets initiative (SBTi) a few weeks ago.
On top, MSCI indicates that “only around half the market reveals the names (and/or unique IDs) of the projects that have generated the carbon credits they are using”.
Overall, in terms of transparency and reporting requirements, MSCI quotes the several references, for example the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCPs), Taskforce on Climate-related Financial Disclosures (TCFD), International Sustainability Standards Board (ISSB) and a multitude of country specific disclosure standards, both regulatory and voluntary.
In addition to the fact that these obligations are becoming increasingly common and varied between jurisdictions. A great challenge for multinational organizations.
Not to mention that sometimes, the reporting requirement about the usage of carbon credits by corporates applies also to the financial institutions that invest on them.
Click at the image below to read more at the original article from MSCI.
