17 July 2023
Initiative Climat Worldwide (iCI), along with ERM, launch at the moment a brand new steerage doc to assist software program corporations account for his or her oblique or “worth chain” greenhouse fuel (GHG) emissions, known as Scope 3 emissions. The usual represents a sensible software of the GHG Protocol designed to help ESG professionals at non-public markets corporations and software program corporations.
Obtain report: Past Boundaries: A step-by-step information for greenhouse fuel emissions accounting within the software program sector
The steerage relies on the GHG Protocol Company Worth Chain (Scope 3) Commonplace and aligned to the Science Primarily based Targets initiative (SBTi) accounting necessities for setting targets. The intent is to transcend simply carbon accounting by figuring out challenges, sources, and ideas which might be particular to the software program sector and will help a software program firm establish, report, and finally cut back its Scope 3 GHG emissions.
The steerage covers the next areas:
Establishing a governance construction for GHG accounting and reporting;
Scope 3 carbon accounting together with a warmth map and suggestion of fabric classes;
Setting targets aligned with science and overview of commitments already made by companions within the trade;
Disclosure necessities and reporting traits;
Carbon discount initiatives and sensible examples from SMEs to multinational software program corporations; and
Dialogue factors for buyers to have interaction with administration groups and for software program corporations to have interaction with suppliers and companions.
The iCI knowledgeable the brand new steerage by way of their Carbon Footprint Working Group, co-chaired by Hg and Montagu, two non-public fairness corporations which might be specialised in software program investing.
Andrea Siaw, Hg and Kim Woehl, Montagu (co-chairs):“We’re happy to launch this steerage doc to equip software program corporations with finest observe accounting ideas for worth chain (Scope 3) emissions. Addressing the distinctive traits of Scope 3 emissions on a sector-specific degree is vital to driving significant motion, specializing in what the fabric dangers and alternatives are. We hope that this helps corporations in enhancing each the standard and completeness of GHG emissions reporting in addition to encouraging actions for discount and setting targets aligned with science.”
Alison Drury, International Business Chief for Know-how at ERM, feedback: “We’re delighted to have partnered with iCI to provide and launch this steerage that may assist the software program sector take motion on its Scope 3 emissions. The sector’s emissions are more and more beneath the highlight and Scope 3 emission inventories are shortly changing into a necessity for all companies as regulation, for instance within the EU, UK and the US, begins to chunk. The applying of this customary will allow a extra constant and streamlined method to the calculation and disclosure of emissions and can help non-public fairness corporations as they search to grasp and drive down emissions throughout their portfolios.”
Peter Dunbar, Head of Personal Fairness on the Rules for Accountable Funding (PRI), feedback: “With most of a software program firm’s carbon footprint typically being of an oblique nature, it’s important that buyers and portfolio corporations on this sector concentrate on the measurement and administration of Scope 3 emissions. This steerage will assist convey a lot wanted sector-specific recommendation, based mostly on present protocols and requirements, to personal markets buyers and their portfolio corporations.”
Peter Ellsworth, Senior Director at Ceres, feedback: “Not solely does the expertise sector now have wonderful steerage to assist handle, calculate and report its Scope 3 emissions, which might represent a disproportionate share of total GHG emissions, however this framework, with its 6-Step course of and use of case research, provides corporations no matter sector an comprehensible recreation plan for measuring and decreasing their Scope 3 emissions.”
Notes to editors
Contact: Sixtine Dubost, Specialist, Asset Class Initiatives, email@example.com
Concerning the Initiative Climat Worldwide (iCI)
iCI is a worldwide, practitioner-led group of personal fairness corporations and buyers that search to higher perceive and handle the dangers related to local weather change.
iCI’s members share a dedication to cut back carbon emissions of personal equity-backed corporations and safe sustainable funding efficiency by recognising and incorporating the materiality of local weather danger. In observe, this means a dedication to successfully analyse and handle climate-related monetary danger and GHG emissions inside their non-public fairness portfolios, according to the suggestions of the Monetary Stability Board’s Job Power on Local weather-related Monetary Disclosures (TCFD). Members decide to sharing data, expertise and finest observe, working collectively to develop sources that may assist standardise practices throughout the trade.
Over 250 member corporations with collectively USD4.3 trillion of property beneath administration (as of July 2023) have joined the iCI. The initiative is formally endorsed by the PRI, is a Supporting Accomplice of The Investor Agenda, and enjoys fruitful partnerships with CDP and Ceres, and personal fairness and enterprise capital associations BVCA and France Make investments.
About iCI Carbon Footprint Working Group
The iCI Carbon Footprint Working Group has been proud to accomplice with professional consultancy ERM to develop this steerage. We thank the broader community of iCI members for his or her session, Hg for his or her form sponsorship of the design, and the varied stakeholders that have been interviewed throughout the analysis on this information.
iCI Working Group members:
Andrea Siaw, Hg (Co-Chair)
Kim Woehl, Montagu (Co-Chair)
Brooke Latham, Blisce
Marco Bartholdy, CVC
Cornelia Gomez and Giacomo Molteni, Basic Atlantic
Ivo Dimov, ICG
Fran Heckman and Aga Siemiginowska, Oakley Capital
Euan Lengthy, Permira
ERM is the enterprise of sustainability.
As the most important world pure play sustainability consultancy, ERM companions with the world’s main organisations, creating progressive options to sustainability challenges and unlocking business alternatives that meet the wants of at the moment whereas preserving alternative for future generations.
ERM’s numerous staff of 8,000+ world-class specialists in over 150 places of work in 40 international locations and territories helps purchasers throughout the breadth of their organizations to operationalize sustainability. By ERM’s deep technical experience, purchasers are properly positioned to handle their environmental, well being, security, danger, and social points. ERM calls this functionality its “boots to boardroom” method – a complete service mannequin that enables ERM to develop strategic and technical options that advance aims on the bottom or on the govt degree.