Asset owners push for mandatory Scope 3 emissions disclosures
Limited data quality and inconsistent accounting frameworks make it challenging for investors to integrate Scope 3 in their targets.
Mandating Scope 3 emissions disclosures at the regulatory level would be critical in helping asset owners overcome barriers to portfolio decarbonisation, the Net Zero Asset Owners Alliance (NZAOA) argues in a discussion paper.
The 89 members of the alliance, who together manage US$9.5 trillion of assets, have all committed to achieving net zero emissions in their portfolios by 2050, in line with the Paris Agreement. Achieving this goal will require them to consider investee companiesā Scope 3 emissions, since these make up the majority of a corporate carbon footprint.
