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🗞️ Driving the news: The method and standardization of reporting greenhouse gas (GHG) emissions under the Greenhouse Gas Protocol (GHGP) have made it difficult for investors to compare the climate impacts of companies
• The protocol is set to become mandatory in the EU next year and is expected to be adopted by the US this year

🔭 The context: Most Western companies use the GHGP for reporting emissions
• The protocol defines three main categories of emissions companies should report, but the broad definitions allow room for interpretation
• This variation in reporting and disclosure can make comparisons challenging, even when the new mandatory norms come into effect

🌎 Why does it matter for the planet: Accurate and standardized reporting of emissions is crucial to assess the carbon footprint of companies and to make informed decisions on investments based on a company's commitment to sustainability
• The lack of clarity and uniformity in reporting methods may limit the effectiveness of this approach

⏭️ What's next: A profound shift is impending with new EU, U.S., and global emission reporting standards on the brink of enforcement
• This monumental transformation aims to curtail greenwashing, ensuring clearer insights into a company's climate impact for investors
• Enhanced corporate transparency and accountability are anticipated to pave the way for a sustainable future

💬 One quote: "More companies are disclosing, but at what quality are they actually going to disclose?" (Vanessa Bingle, director at Alpha Financial Markets Consulting)

📈 One stat: As of March 2023, only five carmakers have publicly disclosed their assumptions for average vehicle life and grams of carbon dioxide equivalent emitted per kilometre driven, highlighting the extent of the disclosure problem in the auto industry

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