Carbon washing. The devil is in the detail.
Carbonwashing: A New Type of Carbon Data-related ESG Greenwashing by Soh Young In, Kim Schumacher :: SSRN
Very interesting paper which perhaps poses more questions than it can answer. In our view until there is a uniform taxonomy globally adopted and the quality of the data is available, consistent, and defendable then there will always been room for improvement.
We at Climate-Transition Ltd have over the last 7 years been adapting and dealing with these challenges in Africa to overcome the shortfalls that are taken for granted in the developed nations. If you cannot measure it, you cannot manage simply put.
When you consider, say, investment by European Development Funds, finance and understanding the base line data is key for climate adaption in developing nations. This is especially critical when you are dealing with target funds that focus on renewable energy, climate adaption in terms of coastal defences.
PCAF (The Partnership for Carbon Accounting Financials) have done excellent work in understanding the challenges and seeking to develop workable solutions where data is either absent, un-audited and or incomplete. They have developed economic emission factors to ease that uncertainty and to provide workable numbers which can be conveyed to senior management with some confidence as to allow corporations to strategize more effectively.
We are now beyond mitigation of climate change; it is all about adaption and speed of change that is now driving the agenda. The quicker financial institutions recognise that BAU is now a thing of the past the better.