Investor group Initiative Climat International (iCI), along with ERM, has published a new guidance document to help tech and software companies account for Scope 3 emissions.
The guidance, released July 17, is designed to help tech and software companies establish a governance structure for greenhouse gas (GHG) emissions accounting and reporting, according to a same day press release from Principles for Responsible Investment (PRI).
“The guidance is based on the GHG Protocol Corporate Value Chain (Scope 3) Standard and aligned to the Science Based Targets initiative (SBTi) accounting requirements for setting targets. The intent is to go beyond just carbon accounting by identifying challenges, resources, and tips that are specific to the software sector and can help a software company identify, report, and ultimately reduce its Scope 3 GHG emissions,” PRI explained.
Along with helping to establish a governance structure for GHG accounting and reporting, the guidance covers Scope 3 carbon accounting, and the setting of science aligned targets. The advice is also focused on disclosure requirements and reporting trends, carbon reduction initiatives, and discussion points for companies to improve engagement with supplies and partners.
The guidance was informed through iCI’s Carbon Footprint Working Group, which is co-chaired by private equity firms Hg and Montagu.
Andrea Siaw of Hg and Kim Woehl of Montagu said in a joint statement, “Addressing the unique characteristics of Scope 3 emissions on a sector-specific level is key to driving meaningful action, focusing on what the material risks and opportunities are. We hope that this supports companies in improving both the quality and completeness of GHG emissions reporting as well as encouraging actions for reduction and setting targets aligned with science.”