Low Carbon Transition Rating
Low Carbon Transition Ratings
Glossary of Terms
February 2023
| Term | Explanation |
|---|---|
| Baseline GHG Emissions Gap | The absolute difference between the company’s projected emissions from all scopes and its net zero-aligned emissions budget to 2050. |
| Baseline GHG Emissions Gap Percentage | The percentage difference between the company’s baseline emissions from all scopes and its net zero-aligned emissions budget to 2050. |
Baseline GHG Emissions Projection | The company's baseline emissions from all scopes from now until to 2050. The baseline emissions assume that the company has not taken any steps to actively manage its emissions. |
| Exposure |
An implied temperature alignment that specifies what degree would the world warm if all companies baseline emissions differed from their net-zero budgeted emissions to the same degree as this company. |
| Exposure Category | A categorical description of the company's Exposure. |
| GHG Emissions Budget | The company’s budgeted emissions from all scopes of emissions for the period from now until 2050. |
| Global Emissions Budget | The cumulative amount of GHG emissions, in gigatonnes, that can be emitted by anthropogenic sources while maintaining global warming below a certain level. Sustainalytics’ global emissions budget is focused on limiting warming to 1.5° by 2050, with the budget derived from calculations provided by the International Energy Agency (IEA). |
Low Carbon Transition Rating Category | A categorical description of the company's Low Carbon Transition Rating. |
| Low Carbon Transition Rating | An implied temperature alignment that specifies what degree the world is expected to warm if all company’s emissions differed from their net-zero budgeted emissions to the same degree as this company. |
| Managed GHG Emissions Gap | The absolute difference between the company’s managed emissions from all scopes and its net zero-aligned emissions budget to 2050. |
| Managed GHG Emissions Gap Percentage | The percentage difference between the company’s managed emissions from all scopes and its net zero-aligned emissions budget to 2050. |
| Managed GHG Emissions Projection | The company’s projected emissions from all scopes of emissions for the period from now until 2050 after accounting for management. |
| Management | A score that indicates the strength of the company's management systems in regard to managing its exposure to the low carbon transition. |
| Management category | A categorical description of the company's Management. |
| Scope 1 | Scope 1 refers to direct emissions that are from company-owned and controlled resources. |
| Scope 2 | Scope 2 refers to indirect emissions that are from the generation of purchased energy, from a utility provider. |
| Scope 3 Downstream | Scope 3 Downstream refers to indirect emissions that are generated downstream from the company's production of goods and services (when the company's products are used). |
| Scope 3 Upstream | Scope 3 Upstream refers to indirect emissions that are generated upstream from the company's production of goods and services (in the supply chain). |
| Scope of Emissions | The Scope of GHG emissions under consideration, includes Scope 1 (direct operations), Scope 2 (indirect operations), Scope 3 Upstream (supply chain) and Scope 3 Downstream (products and services). |
Transient Climate Response to Cumulative Carbon Emissions | The global average surface temperature change that is expected to result per tonne of GHG emissions, according to the International Energy Agency (IEA). |