MSCI Temperature Rating

Tools
1

Hi, is it acceptable to use the MSCI temperature ratings when developing a portfolio temperature rating SBT, or do I have to use the SBTi temperature rating tool?

1 Like
7

Hi,

According to the CDP Temperature Rating Methodology, the temperature score for scopes 1,2&3 at company level is calculated like so:

스크린샷(72)
스크린샷(72)1202×244 18.3 KB

For companies with missing GHG emissions data, 0 was applied which results in the final scope 1,2&3 temperature score being miscalculated. Meaning, the companies with missing GHG emissions data end up with a better (lower) score.

This applies for a lot of companies in my client’s portfolio. Therefore, due to the misleading score, would it be appropriate for my client to:

  1. disregard those companies (without GHG emissions data) when running the tool in order for my client to be able to set a more ambitious target
  2. proceed with the scores calculated with the missing GHG emission, that is, using 0 for the missing data
  3. I am aware that the guide provides a default score (3.2°C) for when there is a missing target, but is there a default score for when the GHG emission data is missing?

Please let me know which you think would be the best way to proceed with calculating the temperature score for my client.

Thank you.

8

The CDP-WWF Temperature Methodology applies the default score (currently 3.2C) when GHG data is missing and this data is needed to be able to calculate an aggregated temp score at a corporate level. This incentivizes companies to report all GHG scopes, to not be penalized with a default score. See p.19 in the CDP-WWF Temperature Methodology for further details.