Abstract:The European Union (EU) is advancing steadily toward the stabilization of atmospheric greenhouse gas concentrations. Various sectors are now obliged to make reductions, and new policies based on the carbon footprint are being encouraged. However, voluntary reporting of so-called scope 3 emissions is hindering successful implementation of these policies. In this study, we present a tiered hybrid analysis to report emissions according to the ISO/TR 14069 standards and to obtain complete measures of scope 3 emiss… Show more
“…Future studies could also apply the proposed method to the Analytical AMNE database to trace the carbon footprints of overseas operations of Chinese listed companies. In addition, future studies could adopt the hybrid LCA method 35 , which combines EIO-LCA and process LCA, to reflect the difference in production technologies among listed companies.…”
Measuring the value chain carbon footprints of listed companies is essential for cumulative climate actions and climate-efficient capital allocation. We trace the carbon emissions embodied in the value chains of Chinese listed companies and find that there is an increasing trend in terms of the carbon footprints of listed companies over the period 2010–2019. In 2019, the direct emissions from these companies reached 1.9 billion tonnes, accounting for 18.3% of national emissions. The indirect emissions were well over twice as large as the direct emissions from 2010 to 2019. Energy, construction and finance companies tend to have a greater volume of value chain carbon footprints, yet the distribution of their carbon footprints varies significantly. Finally, we apply the results to evaluate the financed emissions of leading asset managers’ equity portfolio investment in China’s stock market.
“…Future studies could also apply the proposed method to the Analytical AMNE database to trace the carbon footprints of overseas operations of Chinese listed companies. In addition, future studies could adopt the hybrid LCA method 35 , which combines EIO-LCA and process LCA, to reflect the difference in production technologies among listed companies.…”
Measuring the value chain carbon footprints of listed companies is essential for cumulative climate actions and climate-efficient capital allocation. We trace the carbon emissions embodied in the value chains of Chinese listed companies and find that there is an increasing trend in terms of the carbon footprints of listed companies over the period 2010–2019. In 2019, the direct emissions from these companies reached 1.9 billion tonnes, accounting for 18.3% of national emissions. The indirect emissions were well over twice as large as the direct emissions from 2010 to 2019. Energy, construction and finance companies tend to have a greater volume of value chain carbon footprints, yet the distribution of their carbon footprints varies significantly. Finally, we apply the results to evaluate the financed emissions of leading asset managers’ equity portfolio investment in China’s stock market.
“…Scholars further identified the currently voluntary nature of corporate scope 3 emission reporting as an inhibitor for scope 3 emission reduction. For example, Alvarez et al (2019) claim that because it is voluntary, many firms currently do not report their scope 3 emissions, which in turn slows down scope 3 emission reduction.…”
Section: Carbon Performancementioning
confidence: 99%
“…Vasquez et al (2015), Clabeaux et al (2020), Kulkarni (2019), and Robinson et al (2018) all conducted similar analyses on the advantages of a bottom‐up approach for calculating a university's carbon footprint and confirmed Brander's view. Alvarez et al (2019) analyzed the application of a compound hybrid analysis for the improvement of carbon footprint calculations as part of a case study of a Spanish timber firm. They found that their approach improves accuracy and efficiency, and reduces costs.…”
Section: The Literature On Scope 3 Emissionsmentioning
Firms worldwide are currently investigating ways to decarbonize global supply chains. Corporate scope 3 carbon emission reporting is a critical first step but is not yet a common activity for most firms. The current literature on corporate scope 3 reporting is highly fragmented and does not offer a comprehensive overview, and findings from scopes 1 and 2 emission reporting are often not readily transferrable. Therefore, we conduct a systematic literature review, develop an encompassing research framework, and generate a comprehensive research agenda. Our results identify several patterns in the literature, such as the widespread use of the Carbon Disclosure Project as a data source, a broad agreement on poor comprehensiveness of scope 3 reports, and an overall low amount of empirical research. We contribute a holistic overview of the complex issue of scope 3 reporting and develop numerous promising research avenues.
“…Besides, with product carbon footprints (PCFs) a tool has been developed in the field of industrial ecology which allows consumers to judge climate change-related impacts of products (e.g., Draucker et al, 2011;Lenzen, 2014). Drawing on Alvarez et al (2018), the PCF can be defined as an indicator measuring the direct and indirect green-house gas emissions caused by a specific product along its entire life cycle. Unlike most environmental labels, PCFs provide quantitative and not only qualitative environmental information.…”
Increasing consumers' willingness to pay (WTP) for environmentally friendly products is a key challenge for sustainable development in market economies. Still, how consumers react to favorable and unfavorable environmental information of different quantitative extents is largely unknown. This research therefore uses prospect theory and competing theoretical foundations to derive pertinent hypotheses and test them by using a multi-level structural equation model. The analysis draws on a surveybased experiment conducted among a representative sample of the German population. Results confirm key assertions of prospect theory. The negative effect caused by unfavorable product carbon footprint information on WTP is stronger than the positive effect caused by respective favorable information. Besides this negativity bias, consumers tend to generally reward or punish deviations of a product's environmental performance from industry average instead of consistently accounting for the size of these deviations. From a sustainable development perspective, the observed patterns highlight a problematic contrast between the need for substantial environmental improvements and limited market incentives for companies. Consequently, political intervention is needed to introduce negative labeling, raise consumers' reference points, set minimum industry standards, and subsidize companies for radical improvements.
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