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1 | 1 | The "emissions profile" measures the transition risk on the product-level of a
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2 | 2 | company. The indicator is expressed in the percentage of all products that are
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3 |
| -at high risk, medium risk or low risk due to the products' relative carbon |
4 |
| -footprint. The assessment is first performed on a product-level and can then be |
5 |
| -aggregated to the company-level. |
| 3 | +at high risk, medium risk or low risk due to the products' relative greenhouse |
| 4 | +gas (GHG) emissions. The assessment is first performed on a product-level and |
| 5 | +can then be aggregated to the company-level. |
6 | 6 |
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7 |
| -The "emissions profile" measures the relative carbon footprint per product. As a |
8 |
| -default option each product is compared to the carbon footprint of every other |
9 |
| -product. Products with a higher carbon-footprint face a higher risk. |
| 7 | +The "emissions profile" measures the relative GHG emissions per product. As a |
| 8 | +default option, each product is compared to the GHG emissions of every other |
| 9 | +product. Products with higher GHG emissions are considered to have a higher |
| 10 | +emission profile and hence also face a higher climate risk. |
10 | 11 |
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11 |
| -After identifying each carbon footprint for one product, the products are ranked |
12 |
| -according to their carbon footprint. The ranking method is explained in the |
| 12 | +After identifying the GHG emissions for each product, the products are ranked |
| 13 | +according to their carbon footprint. The ranking method is explained in more |
| 14 | +detail in the |
13 | 15 | [Thresholds](https://2degreesinvesting.github.io/tiltIndicator/articles/tiltIndicator.html#thresholds)
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14 |
| -section. |
| 16 | +section. In short, products with relatively low GHG emissions are assigned to |
| 17 | +the category "low", products with relatively high GHG emissions to the category |
| 18 | +"high" and the products in between to the category "medium". |
15 | 19 |
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16 |
| -After categorization, we aggregate all products from the same category and set |
17 |
| -them in relation to all products that the company produces. We derive the |
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| -"emissions profile". |
| 20 | +Note that for the ranking and categorization, we apply different benchmarks. |
| 21 | +Products are compared to (i) all other products, to (ii) products within the |
| 22 | +same tilt sector, to (iii) products within the same ISIC 4 digit sector, to (iv) |
| 23 | +products measured in the same unit, and a combination of (iv) with either (i), |
| 24 | +(ii) or (iii). |
19 | 25 |
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20 |
| -Please note that carbon footprints, and emissions are used equivalently. Carbon |
21 |
| -footprint refers only on the emissions which occur at the production stage of |
22 |
| -the product and not the emissions from the inputs. The unit is CO2e in kg. |
| 26 | +For the company-level results, we aggregate all products from the same category |
| 27 | +and set them in relation to all products that the company produces. We derive |
| 28 | +the "emissions profile", which is expressed as the share of products per |
| 29 | +category for each company. |
23 | 30 |
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24 |
| -This indicator provides the share of products with "low", "medium", or "high" |
25 |
| -relative production emissions per company. |
| 31 | +Finally, the indicator provides the share of products with "low", "medium", or |
| 32 | +"high" relative GHG emissions per company. |
26 | 33 |
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27 | 34 | The output of this indicator contains the following:
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28 | 35 |
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| -- a column with production emissions |
30 |
| -- a column indicating the percentile relative to (i) all products with same unit |
31 |
| -(ii) products in same sector (iii) products in same segment |
32 |
| -- a column indicating whether the product has "low", "medium" or "high" relative |
33 |
| -production emissions. |
| 36 | +* A column indicating the benchmark to which a product is compared. |
| 37 | +* A column indicating whether the product has "low", "medium" or "high" relative |
| 38 | +GHG emissions. |
| 39 | +* A column indicating the share of the products per category and benchmark". |
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