Investments aligned with this Strategic Goal aim to reduce greenhouse gas emissions resulting from electricity and heat generation while shifting energy generation away from fossil fuels and towards low- and zero-carbon energy alternatives. Investments aligned with this Strategic Goal may also aim to accelerate energy efficiency.
Investors interested in deploying this strategy should consider the scale of the addressable problem, what positive outcomes might be, and how important the change would be to the people (or planet) experiencing it.
Key questions in this dimension include:
Investments in this Strategic Goal aim to address greenhouse gas (GHG) emissions resulting from human activity, a key contributor to global climate change (1). Climate change has many adverse impacts on people and planet, including higher average temperatures, greater likelihood of extreme weather events, sea level rise, and extinction of plant and animal species (2). In the landmark 2018 report by the UN Intergovernmental Panel on Climate Change (IPCC), the world’s top climate scientists warned that just a dozen or so years are left to keep global temperature increase to a maximum of 1.5 degrees Celsius, the low end of the Paris Agreement 1.5–2°C limit, after which irrecoverable, heightened climate impacts will be felt across many dimensions—from drought to flood to extreme weather—with attendant consequences for people worldwide (3).
Investments aligned with this Strategic Goal aim to reduce greenhouse gas (GHG) emissions from the generation of electricity and heat. Among sectors consuming energy, which include transportation, electricity and heat, manufacturing, and construction, electricity and heat for residential and commercial use are the most emissions-intensive, accounting for 30.4% of all worldwide emissions in 2016, as per the World Resource Institute (3).
Research further shows that investments in clean electricity and heat have benefits beyond emissions reductions, improving air quality and human health by decreasing reliance on fuels for the production of electricity and heat that emit pollutants (4). Investments in this Strategic Goal can also provide access to reliable, sustainable sources of electricity and heat for more vulnerable households, many of which even today lack access to electricity and the economic and social security it provides. Finally, with advancements in renewable energy technology, electricity and heat generated from renewable sources can be cheaper today than that generated from fossil fuels.
Given the outsize share of GHG emissions emitted by electricity and heat generation, GHG emissions from heat and electricity generation must decrease. Compounding the problem’s urgency is the reality that many people worldwide currently have access only to energy sources that severely impact human health. For example, more than 2.7 billion people (38% of the world’s population) rely on the traditional use of solid biomass for cooking, which can cause adverse health effects (5). Bridging the existing energy divide and securing equal access globally is paramount to enable further human development for those who lack adequate energy access. (For more on energy access, see the Energy Access theme in IRIS+).
Investments aligned with this Strategic Goal can:
Note: See more about the GIIN’s resources on Climate Finance.
Emissions from electricity and heat production dropped by 2% from 2013 to 2016, following a multi-year growth trajectory (6). However, emissions rose again in subsequent years as a result of slower-than-anticipated adoption of renewable energy resources, higher overall energy consumption driven by a strong global economy, and increased demands for heating and cooling in some geographic regions, driven in part by climate change (7). The scale of the problem is therefore massive and growing. Still, there have been promising innovations in both technology (including new sources of energy, such as offshore wind) and financing (such as specialty finance companies that can operate distributed energy assets over the long term, saving both cost and energy). Concurrently, dirty energy infrastructure could be “leapfrogged” in some emerging markets.
Exacerbating the scale of the problem, the world has roughly a decade remaining to successfully mitigate the worst impacts of global climate change (8). Massive capital investment in renewable energy will be needed to set the world on a low-carbon trajectory. As Bloomberg New Energy Finance reported in its 2019 New Energy Outlook, a 12-terawatt expansion of generating capacity calls for USD 13.3 trillion in new investment from 2019 to 2050, with 77% going to renewables (9). As of 2014, an additional USD 1 trillion in clean energy investment overall was needed—each year—to keep the world below a projected two-degree temperature increase (10). Since then, unfortunately, investment has fallen far short. From a peak of USD 326.3 billion in 2017, global renewable energy investment fell 11.5% to USD 288.9 billion in 2018.
Investors interested in deploying this strategy should consider whom they want to target, as almost every strategy has a host of potential beneficiaries. While some investors may target women of color living in a particular rural area, others may set targets more broadly, e.g., women. Investors interested in targeting particular populations should focus on strategies that have been shown to benefit those populations.
Key questions in this dimension include:
As with any Strategic Goal aiming to mitigate climate change, all people benefit from aligned investments. This said, specific target stakeholders include the following:
Planet: Industrial activities, such as electricity and heat generation, have caused a sharp increase in atmospheric carbon dioxide from 280 to 412 parts per million over the last 150 years (11). The International Renewable Energy Agency (IRENA) has projected that 65% of worldwide energy use could come from renewables by 2050, which would allow countries to meet the Paris Agreement climate goals. Right now, renewable energy represents about 25% of global electricity generation and 15% of all energy; the rest is generated by fossil fuels (12).
Municipalities: Cities worldwide must transition to clean generation of electricity and heat. For example, New York’s 2015 State Energy Plan seeks to implement a “clean, resilient, and affordable energy system for all New Yorkers,” calling for a 40% reduction in GHG emissions from 1990 levels and for half of electricity to come from renewable energy sources (13). Absent increased private and public investment in technologies and infrastructure, such goals cannot be realized.
Individuals: New innovations, resilient infrastructure, and choice in energy sources provide individual energy consumers with cleaner, more cost-effective ways to run their homes and businesses. These positive impacts apply to both residential and commercial real estate and often last quite long. For example, retail consumer geothermal heating and cooling installations have a projected lifespan of more than 50 years, over which substantial energy savings can be realized (14).
Households without energy access: Currently, more than 860 million people worldwide lack access to energy (15). Investments in this strategy can increase energy access while also potentially leapfrogging fossil-fuel-intensive energy sources in regions lacking existing energy infrastructure. Beyond tackling unequal energy access, investments in this strategy also tackle the broader inequity that many of the world’s most vulnerable populations to climate change have contributed the fewest GHG emissions.
Previously excluded and minority groups: The worst impacts of global climate change disproportionately affect previously excluded or minority groups – often communities of color. Investments in this Strategic Goal can facilitate the urgent transition to cleaner sources of energy, with attendant improvements to both energy access and human health. As the COVID-19 pandemic has further laid bare, in the United States, the disproportionate proximity of communities of color to fossil fuel power plants severely harms human health as a result of the associated particulate matter and nitrogen dioxide (16).
Women and girls: The worst impacts of global climate change likewise disproportionately impact women and girls as a result of multidimensional factors. These include a higher likelihood of living in poverty, less access to basic human rights, and greater indoor occupational hazards—such as, in the context of this strategic goal, greater responsibilities for cooking, leading to greater exposure to indoor air pollution resulting from dirty forms of energy used to prepare food (17). According to the World Health Organization, roughly 3 billion people worldwide still cook using solid fuels (such as wood, crop waste, charcoal, coal, or dung) or kerosene over open fires and inefficient stoves (18). These practices lead to an estimated 3.8 million premature deaths each year from illness caused by the resulting household air pollution (19). Women and children have the greatest exposure and thus are most impacted.
Access to electricity and heat is a global human necessity. Investment needs vary somewhat by geographic location, as follows:
Notwithstanding this type of differentiation, outside deeply remote, nearly unpopulated areas, the impact target effectively extends worldwide.
Dimensions of Impact: CONTRIBUTION
Investors considering investing in a company or portfolio aligned with this strategy should consider whether the effect they want to have compares to what is likely to happen anyway. Is the investment's contribution ‘likely better’ or ‘likely worse’ than what is likely to occur anyway across What, How much and Who?
Key questions in this dimension include:
Organizations can consider contribution at two levels—enterprise and investor. At the enterprise level, contribution is “the extent to which the enterprise contributed to an outcome by considering what would have otherwise happened in absence of their activities (i.e. a counterfactual scenario).” To learn more about methods for assessing counterfactuals, see the Impact Management Project.
Investments in electricity and heat generation can contribute markedly to reducing overall GHG emissions as follows.
Signal that Impact Matters: By investing in technologies that support renewable and clean generation of electricity and heat or improvements in energy efficiency, investors signal that these technologies will be vital to global efforts to keep the rise in temperature below 1.5°C. Given the huge volume of GHG emissions currently resulting from the production of heat and electricity, investments in this theme are linchpins in the world’s emissions reductions: speeding the transition to low-carbon energy sources; constructing renewable energy infrastructure; increasing consumer adoption of energy-saving technologies, such as smart meters; and increasing energy access by leapfrogging traditional energy infrastructure and proliferating technologies like micro-grids.
Engage Actively: Investors can proactively engage management teams of companies in their portfolios to switch to renewable energy generation and to increase the energy efficiency of their buildings and operations. Investors can also engage in policy advocacy at municipal, state, and national levels. As just one example, investors can advocate for renewable portfolio standards. Investors’ voices are powerful and important for advocacy in the transition to a much-needed low-carbon global economy.
Grow New or Undersupplied Markets: Capital-intensive and time-consuming research and development of new technologies will be needed to transform infrastructure and scale renewable and clean production of electricity and heat. Investors with higher risk appetites can provide the necessary patient capital. Likewise, investments in undersupplied markets can expand energy systems to reach new and underserved geographies (21).
Provide Flexible Capital: Investments aligned with this Strategic Goal can face high risks, demanding flexibility on the part of investors, which can provide catalytic capital. In addition, end users may not be able to afford some of the upfront costs of the infrastructure or technology needed to transition electricity and heat production to renewable and clean energy (users could be, for example, a college campus or a municipality). By providing needed capital for upfront investments, investors can help heat and electricity users make this transition.
Dimensions of Impact: HOW MUCH
Investors deploying capital into investments aligned with this strategy should think about how significant the investment's effect might be. What is likely to be the change's breadth, depth, and duration?
Key questions in this dimension include:
As heat and electricity consumption are universal human needs, investments aligned with this strategic goal can affect the entire world population. As a proxy for the impact of providing energy access, this strategy could reach more than 860 million people (15). In order to achieve a higher quality of life and decent living standards globally, as referenced in SDG 7, universal energy access is needed. If increased energy usage does not come from renewables, the planet risks increased negative effects due to carbon emissions.
The amount of change that target stakeholders can experience through this strategy can be transformative and long-lasting, since built infrastructure has a multi-decadal lifespan. The long-lasting nature of infrastructure also underlines the pressing need for near-term investments that hasten the transition to renewable infrastructure, before non-renewable infrastructure is locked in. Meeting the Paris Agreement’s goal to limit global warming to well below 2 °C and pursuing efforts towards 1.5 °C will likely require rapid and fundamental changes to energy systems (20).
Key questions in this dimension include:
Endurance Risk: Given the intermittency of solar and wind, lack of ability to store energy at scale is one challenge hindering the widespread use of these major sources of renewable energy for producing electricity and heat. Despite promising recent developments in energy storage, technology has not yet advanced to enable true renewable transformation of the energy sector. Modernization and adoption of “smart grids” play pivotal roles in decarbonization. Pumped hydroelectric storage is one promising form of electricity storage, though one not without its own environmental impacts. Related risks due to intermittency and lack of storage capacity include challenges getting projects funded or a lack of data on the exact degree of intermittency in a given geographical area.
Investors can mitigate both External and Endurance Risks through risk transfer, for example through the use of weather-related reinsurance products. In doing so, they can effectively quantify and mitigate risks to renewable energy projects deriving from either extreme weather events or solar and wind intermittency. This approach to managing risk can allow projects to proceed that are good for people and the planet.
These risk factors have multiple likely consequences. One is the potentially stalled development of infrastructure projects in light of extreme weather events (as seen in the context of the impact of COVID-19 on society and business) or challenging policy environments. A second likely consequence could be difficulty securing favorable deal terms in instances with little data on the degree of renewable energy intermittency and thus possible overestimation of intermittency risk, as investors would typically prefer to overestimate intermittency to minimize their downside risk. Investors may also encounter potential challenges to project funding if environmental impacts are too great a cost as weighed against a project’s benefits in terms of lowered GHG emissions. Finally, overall, there is inherent risk in the challenge of keeping global temperature rise to 1.5 degrees Celsius—a goal that scientists broadly agree is both deeply urgent and challenging to achieve absent a very swift transition to a low-carbon global future (23).
K-Road DG, an independent power developer and investor, invested USD 56 million in Green Charge Networks (of which the bulk was project finance, with a fraction dedicated to corporate equity). Green Charge is a turnkey energy-storage developer differentiated by control software used to predict load and dispatch at the right time. By offering systems at zero upfront cost, Green Charge aims to help more businesses utilize energy storage. The investment increased the number of businesses which are able to use energy storage and therefore decreased GHG emissions associated with their business operations.
Clean Energy Venture Group, a venture capital firm focused on climate solutions, co-invested with multiple other investment firms in the 2011 Series A funding round of MyEnergy. MyEnergy used AI-driven software to retrieve data from utility websites with the goal of finding and aggregating relevant information on residential customer patterns of use of utilities (electric and gas). MyEnergy then communicated this aggregated information to consumers to motivate behavioral change and drive significant energy savings. MyEnergy shares were exchanged for Nest Lab shares in 2013; Nest Labs was acquired by Google one year later for USD 3.2 billion. This investment decreased consumer energy usage by motivating behavioral change through this aggregation and sharing of utility information.
On behalf of the Swiss Investment Fund for Emerging Markets (SIFEM) and United Bank of Switzerland (UBS) Impact Investing SME Focus Fund (IIF SME), Obviam, an investment advisor in emerging markets and developing countries, invested in Apis Growth Fund I, a private equity fund focused on financial inclusion in Africa and Asia. In 2017, Apis provided USD 30.8 million to Greenlight Planet, supporting the company expand across Africa. Greenlight Planet provides an innovative lighting and energy solution through solar energy designed particularly for rural villages and offgrid communities. Alongside funding, Apis supported the company’s future growth by offering technical support, appointing and covering the costs of an internal auditor, and assisting with the implementation of operating guidelines to formalize the company’s environmental initiatives. This investment supported acceleration of the company’s growth across Africa and strengthened its capital structure (25).
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This mapped evidence shows what outcomes and impacts this strategy can have, based on academic and field research.
Amie Gaye. “Access to Energy and Human Development”. UNDP (2007/2008): 1-18
Agustin Alvarez-Herranz, Daniel Balsalobre-Lorente, Muhammad Shahbaz, José María Cantos, “Energy innovation and renewable energy consumption in the correction of air pollution levels”. Energy Policy, 105 (2017): 386-397
Lamiaa Abdallah, Tarek El-Shennawy, “Reducing Carbon Dioxide Emissions from Electricity Sector Using Smart Electric Grid Applications”, Journal of Engineering, vol 2013, (2013)
McKinsey. “Global Energy Perspective 2019: Reference Case.” (2019)
Doug Arent, Jacquelyn Pless, Trieu Mai, Ryan Wiser, Maureen Handa, Sam Baldwin, Garvin Heath, Jordan Macknick, Morgan Bazilian, Adam Schlosser, Paul Denholm. “Implications of high renewable electricity penetration in the U.S. for water use, greenhouse gas emissions, land-use, and materials supply.” Applied Energy 123, (2014): 368-377
Ashlinn K.Quinna, Nigel Bruce, Elisa Puzzolo, Katherine Dickinson, Rachel Sturke, Darby W. Jack, Sumi Meht, Anita Shankar, Kenneth Sherr, Joshua P Rosenthal. “An analysis of efforts to scale up clean household energy for cooking around the world”. Energy For Sustainable Development, Volume 46, (2018): 1-10
Joshua Rosenthal, Kalpana Balakrishnan, Nigel Bruce, David Chambers, Jay Graham, Darby Jack, Lydia Kline, Omar Masera, Sumi Mehta, Ilse Ruiz Mercado, Gila Neta, Subhrendu Pattanayak, Elisa Puzzolo, Helen Petach, Antonello Punturieri, Adolfo Rubinstein, Michael Sage, Rachel Sturke, Anita Shankar, Kenny Sherr, Kirk Smith, and Gautam Yadama. “Implementation Science to Accelerate Clean Cooking for Public Health”. ehp Enviromental Health Perspectives. Vol. 125, No. 1. (2017)
Each resource is assigned a rating of rigor according to the NESTA Standards of Evidence.
This starter set of core metrics — chosen from the IRIS catalog with the input of impact investors who work in this area — indicate performance toward objectives within this strategy. They can help with setting targets, tracking performance, and managing toward success.
Amount of greenhouse gas (GHG) emissions mitigated by the organization during the reporting period. This should include GHG emissions reductions from direct and indirect sources.
Greenhouse Gas Emissions Sequestered (PI9878) + Greenhouse Gas Emissions Avoided (PI2764) + Greenhouse Gas Emissions Reduced (OI4862)
Organizations should footnote all assumptions used, including detailed information on calculation methodology. See usage guidance for further information.
This measure should include greenhouse gas emissions reductions from direct and indirect sources (Scopes 1-3). Organizations may find The GHG Protocol for Project Accounting helpful in calculating this metric.
To understand the key indicator that will be used to measure the outcome (reduced GHG emissions), which is a critical step in measuring progress toward the Strategic Goal.
Amount of greenhouse gases (GHG) emitted through the organization’s operations during the reporting period.
Greenhouse Gas Emissions: Direct (OI4112) + Greenhouse Gas Emissions: Indirect (OI9604)
Organizations should footnote all assumptions used including detailed information on their calculation methodology. See usage guidance for further information.
This metric is intended to capture the total amount of greenhouse gases emitted during the reporting period. To disaggregate types of greenhouse gas emissions, organizations are encouraged to report Greenhouse Gas Emissions Types (OI5732).
The Greenhouse Gas Protocol (GHG Protocol) is the most widely used international accounting tool to understand, quantify, and manage greenhouse gas emissions. The GHG Protocol defines direct (Scope 1) emissions as emissions from sources that are owned or controlled by the reporting entity. The GHG Protocol defines indirect (Scopes 2-3) emissions as emissions that are a consequence of the activities of the reporting entity, but occur at sources owned or controlled by another entity.
To see the standard and guidance on calculating this measure, reference The GHG Protocol Corporate Accounting and Reporting Standard. Further resources are available at the GHG Protocol Calculation Tools page.
To understand the total emissions produced by the organization’s activities, which is key in understanding the organization’s contributions toward creating and mitigating climate change.
Amount of energy generated and consumed by the organization during the reporting period.
N/A
Organizations should footnote all assumptions used.
This metric is intended to capture the amount of energy produced and used by the organization. For example, if an organization installed solar panels at its factory, it would report the amount of energy produced and used from those panels. Adding Energy Generated for Use: Total (OI9624) with Energy Purchased: Total (OI8825) should equal the total energy consumed by the organization during the reporting period, which aligns to SASB RT-EE-130a.1.
Organizations are encouraged to disaggregate this metric using Energy Generated for Use: Non-renewable (OI1495) and Energy Generated for Use: Renewable (OI2496).
To understand how much energy the organization generated for use during the reporting period, which is useful in assessing its overall environmental effects.
Amount of energy generated and sold to offtaker(s) during the reporting period.
N/A
Organizations should footnote the energy type(s) and all assumptions used.
This metric is intended to capture energy generated for commercial sale by the organization. Bulk energy is usually sold under a power purchase agreement with an electricity utility. The buyer or purchaser of this energy is referred to as the offtaker. The unit of measure agreed by International Finance Institutions (IFIs) is GWh. For other Units of Measure, refer to Unit of Measure (PD1602).
Organizations interested in reporting energy production at a product level should report Energy Capacity of Products Sold (PD1504) and/or Energy Capacity of Product (PD2713).
Organizations wishing to report the amount of energy generated for their own use should report Energy Generated for Use: Total (OI9624).
Organizations are encouraged to disaggregate this metric by its submetrics, Energy Generated for Sale: Non-Renewable (PI2210) and Energy Generated for Sale: Renewable (PI5842).
To understand how much of the energy generated by the organization was sold to offtakers, which is useful in assessing the environmental impacts of the organization’s operations.
Amount of renewable energy generated and sold to offtaker(s) during the reporting period.
N/A
Organizations should footnote the renewable energy type(s) and all assumptions used.
This metric is intended to capture renewable energy generated for commercial sale by the organization. Bulk energy is usually sold under a power purchase agreement with an electricity utility. The buyer or purchaser of this energy is referred to as the offtaker.
Renewable energy sources include solar, wind, geothermal, hydro energy, biomass, and other forms. Organizations can refer to the IRIS+ glossary for additional information on this definition, and to the usage guidance in the metric record for further details on this metric itself.
Organizations that want to report on the amount of renewable energy generated for the organization’s own use should report against Energy Generated for Use: Renewable (OI2496).
To understand how much of the energy generated by the organization and sold to offtakers was renewable, which is useful in assessing the environmental impacts of the organization’s operations.
Amount of money spent by the organization for its own consumption in renewable energy infrastructure and technology at the organization’s operating facilities during the reporting period
N/A
Organizations should footnote the type of expenditures made and details on energy sources to be used. See usage guidance for further information.
This metric is intended to capture the infrastructure that will be used to produce energy that will be consumed by the organization. For example, a large-scale manufacturing facility in the desert may purchase solar array or wind farm technologies.
Organizations are encouraged to report this metric in conjunction with Green Building Practices (OI6765).
To understand how the organization spent on renewable energy infrastructure and technology, which is useful in assessing the environmental intents of the organization’s operations.
Area of buildings projected to receive energy efficiency improvements as a result of investments made by the organization during the reporting period.
N/A
Organizations should footnote details on the types of energy efficiency improvements planned, as well as all assumptions used. See usage guidance for further information.
This metric is intended to capture the area of buildings projected to receive energy efficiency improvements as a result of investments made by the organization during the reporting period.
Organizations should report the gross floor area in the building(s) where the energy efficiency improvements are projected to be implemented. The projects can include efficiency improvements of lighting (lower usage fixtures, fewer fixtures), increase in building performance through improved insulation, installation of energy-efficient windows, and increased heating/cooling and appliance efficiency.
To understand the area of buildings that will receive energy efficiency improvements as a result of the organization’s investment, which is useful in assessing the environmental intents of the organization.
Amount of money spent by the client on sources of energy during the reporting period.
N/A
Organizations should footnote the type of expenditures made and details on energy sources used.
This metric is intended to capture the amount of money spent by the client on sources of energy during the reporting period.
These data can be collected directly from clients of the organization. Examples of spending on energy include: fuels, charging stations, product payments, and other costs. For example, this metric would account for an individual user’s utility payments for energy, or their payments for a solar lantern.
To understand whether energy provided to clients is affordable.
While the above core metrics provide a starter set of measurements that can show outcomes of a portfolio targeted toward this goal, the additional metrics below — or others from the IRIS catalog — can provide more nuance and depth to understanding your impact.
Amount of greenhouse gases (GHG) emitted through the organization’s operations from direct emissions sources during the reporting period.
N/A
Organizations should footnote all assumptions used including detailed information on their calculation methodology. See usage guidance for further information.
The Greenhouse Gas Protocol (GHG Protocol) is the most widely used international accounting tool to understand, quantify, and manage greenhouse gas emissions. The GHG Protocol defines direct (Scope 1) emissions as emissions from sources that are owned or controlled by the reporting entity. To see the standard and guidance on calculating this measure, reference The GHG Protocol Corporate Accounting and Reporting Standard. Further resources are available at the GHG Protocol Calculation Tools page.
To understand the amount of emissions produced directly by the organization, a key data point in assessing the organization’s contribution toward mitigating climate change.
Amount of greenhouse gases (GHG) emitted through the organization’s operations from indirect emissions sources during the reporting period.
N/A
Organizations should footnote all assumptions used including detailed information on their calculation methodology. See usage guidance for further information.
The Greenhouse Gas Protocol (GHG Protocol) is the most widely used international accounting tool to understand, quantify, and manage greenhouse gas emissions. The GHG Protocol defines indirect (Scopes 2-3) emissions as emissions that are a consequence of the activities of the reporting entity, but occur at sources owned or controlled by another entity.
To see the standard and guidance on calculating this measure, reference The GHG Protocol Corporate Accounting and Reporting Standard. Further resources are available at the GHG Protocol Calculation Tools page.
To understand the amount of emissions produced indirectly by the organization, a key data point in assessing the organization’s contribution toward mitigating climate change.
Indicates whether the organization implements a strategy to reduce greenhouse gas (GHG) emissions.
N/A
Organizations should footnote the details of the strategy, the type/scope of emissions focused on, how the strategy is being implemented, and specific reduction targets. See usage guidance for further information.
This metric is intended to provide detailed information on the greenhouse gas emissions strategy in place but does not provide an evaluation of the success with which the strategy is implemented.
To understand whether or not the organization has a dedicated strategy to reduce emissions that contribute to climate change.
Describes the quantifiable social and environmental targets set by the organization.
N/A
Organizations should footnote details on specific targets, timeframes for accomplishing these targets, and how results will be measured for these targets. See usage guidance for further information.
This metric is intended to capture what targets the organization sets for their social and environmental goals. In this Climate Change Mitigation theme, this metric can be used to capture Greenhouse Gas (GHG) emissions targets and emissions mitigation targets. For more information on setting targets, reference the Science Based Targets Initiative (SBTI) Step by Step Guide.
Social and/or environmental targets are typically consistent with the organization’s mission, and are specific, measurable, attainable, relevant, and time-bound. Metrics can be used to measure progress towards these goals.
To understand what goals the organization has set for its social and environmental impact, including its GHG emissions.
Amount of greenhouse gas (GHG) emissions reduced by the organization during the reporting period.
N/A
Organizations should footnote all assumptions used, including detailed information on calculation methodology. See usage guidance for further information.
This metric is intended to capture the total amount of greenhouse gas emissions that were reduced by the organization during the reporting period.
This metric should be used in combination with Greenhouse Gas Emissions Mitigation Types (OI9839) in order to disaggregate the types of greenhouse gas emissions reductions relevant to the organization’s activities.
This measure should include greenhouse gas emissions reductions from direct and indirect sources (Scopes 1-3). Organizations may find The GHG Protocol for Project Accounting helpful in calculating this metric.
To understand the reductions in GHG emissions that the organization has accomplished, which is key in assessing whether the organization is actively working toward mitigating climate change.
Indicates greenhouse gas emissions mitigation types applied by the organization during the reporting period. Choose all that apply:
Greenhouse emission reductions from fuel combustion
Greenhouse gas emission reductions from industrial processes (non-combustion, chemical reaction, fugitive, other)
Greenhouse gas emission reductions from land use, land use change, and forestry
Greenhouse gas emissions reductions from livestock
Greenhouse gas emissions reductions due to products sold
Greenhouse gas emissions reductions due to services sold
Greenhouse gas emissions reductions from waste handling and disposal
Greenhouse gas emissions avoided from product replacements
Greenhouse gas emissions avoided due to carbon offsets sold
Greenhouse gas emissions avoided due to carbon offsets purchased
Greenhouse gas emissions sequestered from land use, land use change, and forestry
Greenhouse gas emissions sequestered from Carbon Capture and Storage
Other (describe)
N/A
Organizations should footnote all assumptions used, including source(s) of data.
This metric is intended to capture the different types of greenhouse gas emissions mitigation types.
This metric should be used in conjunction with Greenhouse Gas Emissions Reductions: Total (OI5951), Greenhouse Gas Emissions Avoided: Total (PI2764), Greenhouse Gas Emissions Reductions: Total (OI4862), and Greenhouse Gas Emissions Mitigated: Total (OI5951).
This data originates is drawn from the company itself, which indicates how they are mitigating greenhouse gas emissions.
To understand how the organization is mitigating greenhouse gas emissions.
Percentage of revenue that the organization earns from projects and services designed to deliver a specific social or environmental benefit during the reporting period.
Revenue from products/services designated divided by Sales Revenue (PI1775)
Organizations should footnote examples of products and services categorized as providing social/environmental benefit. See usage guidance for further information.
This metric is intended to capture the percent of the organization’s total revenue deriving from products and services designed to deliver a specific social or environmental benefit. Products and services designed to deliver a specific environmental benefit could include providing commercial solar panels to replace kerosene lanterns as the stakeholder’s energy source, or electric vehicles that reduce the number of high-GHG vehicles in use.
To understand how much of the organization’s core business is derived from socially and environmentally positive products and services.
Ratio of the organization’s emissions normalized by revenue.
Greenhouse Gas Emissions: Total (OI479) / Total Revenue (FP6510)
Organizations should footnote all assumptions used, including sources of data.
This metric normalizes Greenhouse Gas (GHG) emissions by total revenue as a means to compare emissions between companies. For further information on how to collect this data, see usage guidance in the metric records for Greenhouse Gas Emissions: Total (OI479) and Total Revenue (FP6510).
This metric is sourced from GRI Disclosure 305-4.
To understand the amount of GHG emissions produced as a result of the organization’s activities as a function of its total revenue, which is helpful in comparing GHG emissions between companies of different sizes.
Amount of reduction in energy consumption achieved as a direct result of energy conservation and efficiency initiatives employed by the organization during the reporting period.
N/A
Organizations should footnote the details on energy conservation techniques, type of energy conserved, and all assumptions used. See usage guidance for further information.
This metric is intended to measure the amount of energy saved by the organization through specific energy-efficiency improvements. Improvements can be made as a result of energy-efficient construction/renovation investments within the organization’s operations or as a result of improvements to reduce the amount of energy needed to carry out the same processes or tasks. It is not intended to capture reduction in energy consumption that results from reduced organizational activities (e.g. partial outsourcing).
Organizations are encouraged to report this metric in conjunction with Energy Generated for Use: Total (OI9624), Energy Purchased: Total (OI8825), and Energy Conservation Strategy (OI4531).
To understand how much the organization has reduced its energy consumption through energy conservation and efficiency efforts, which is helpful in assessing the organization’s overall environmental effects.
Amount of purchased energy consumed by the organization during the reporting period. Reporting Period – The reporting period is the time from the Report Start Date (OD6951) to the Report End Date (OD7111).
N/A
Organizations should footnote all assumptions used.
This metric is intended to capture the amount of energy purchased by the organization during the reporting period. Adding Energy Generated for Use: Total (OI9624) with Energy Purchased: Total (OI8825) should equal the total energy consumed by the organization during the reporting period, which aligns to SASB RT-EE-130a.1.
Organizations are further encouraged to disaggregate this number by Energy Purchased: Non-Renewable (OI1496) and Energy Purchased: Renewable (OI3324).
To understand how much energy the organization purchased during the reporting period, which is useful in assessing its overall environmental effects.
Indicates whether the organization implements an energy conservation strategy to reduce its operational energy usage.
N/A
Organizations should footnote the details of the strategy, how it is being implemented, how usage is recorded, and specific reduction targets. See usage guidance for further information.
This metric is intended to provide detailed information on the energy conservation strategy in place but does not provide an evaluation of the success with which the strategy is implemented.
Energy conservation efforts, to footnote, include organizational or technological innovations that allow a defined process or task to consume energy more efficiently. This includes Building Area of Energy Efficiency Improvements (PI1586), converting to renewable energy sources, or the elimination of unnecessary energy use due to changes in behavior. Further examples of energy efficiency efforts, sourced from GRESB, include: Automatic meter readings (AMR), automation system upgrades / replacements, management systems upgrades / replacements, installation of high-efficiency equipment and appliances, installation of on-site renewable energy, occupier engagement / informational technologies, smart grid / smart building technologies, systems commissioning or retro-commissioning, wall / roof insulation, and window replacements.
Organizations are encouraged to report the amount of energy conserved using Energy Conserved (OI6697) and Energy Purchased: Total (OI8825) and its 2 submetrics.
To understand whether the organization has a strategy in place to conserve energy, which is helpful in understanding the organization’s intent to create positive environmental effects.
Amount of potential energy generation over the lifetime of the product for all products sold by the organization during the reporting period.
Units/Volume Sold: Total (PI1263) × Energy Capacity of Product (PD1504)
Organizations should footnote the energy type(s) and all assumptions used to determine the energy capacity.
This metric is intended to capture the total potential energy production of the products that were sold during the reporting period. This metric should be based on the amount of energy that could be generated by the product during its lifetime. It is most applicable for products that will be operated or used by a client of the organization as opposed to the organization itself.
To understand how much energy the organization’s product or service could provide over its lifetime, which is useful in assessing its potential environmental effects.
Amount of energy savings over the lifetime of the product for those products that were sold by the organization during the reporting period.
Units/Volume Sold: Total (PI1263) × (Energy Consumption of Product Replaced (PD5578) − Energy Consumption of Product (PD6596))
Organizations should footnote all assumptions used.
This metric is intended to capture the energy savings to consumers for organizations that sell energy-efficient products. For example, an organization that sells compact fluorescent lightbulbs (CFLs) that replace incandescent lightbulbs might use this metric to report on the total energy savings to its clients based on the products provided. This metric captures the lifetime energy savings of products sold.
When multiplying the energy savings from each product sold by Units/Volume Sold: Total (PI1263), organizations should use absolute number of units rather than volume. For example, if the energy savings of each product (e.g., CFL lightbulb) is multiplied by each unit of CFL lightbulb product sold, the total energy savings of products sold can be calculated.
To understand how much energy the organization’s product or service could save over its lifetime, which is useful in assessing the organization’s potential environmental effects.