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2016 ET CARBON RANKINGS REPORT

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22<br />

UNDERSTANDING THE <strong>ET</strong> <strong>CARBON</strong> <strong>RANKINGS</strong><br />

FIGURE 9:<br />

AVERAGE SCOPE 1<br />

AND 2 INTENSITY<br />

COMPARED WITH<br />

SCOPE 3 INTENSITY AS<br />

A PERCENTAGE OF THE<br />

TOTAL FOOTPRINT FOR<br />

COMPANIES DISCLOSING<br />

ALL 15 SCOPE 3<br />

CATEGORIES IN THE<br />

<strong>ET</strong> <strong>CARBON</strong> RANKING<br />

UNIVERSE.<br />

80%<br />

20%<br />

Material Scope 3 categories by sector<br />

Table 3 seeks to highlight which of the<br />

15 Scope 3 categories are more likely to<br />

be material for any given sector. In every<br />

sector, for each Scope 3 category, the<br />

maximum percentage of total Scope 3<br />

intensity represented by that category for a<br />

single company is shown. The three highest<br />

categories for each sector are highlighted in<br />

the table and are likely to be ‘material’.<br />

FIGURE 10:<br />

AVERAGE SCOPE 1<br />

AND 2 INTENSITY<br />

COMPARED WITH<br />

SCOPE 3 INTENSITY AS<br />

A PERCENTAGE OF THE<br />

TOTAL FOOTPRINT FOR<br />

COMPANIES DISCLOSING<br />

AT LEAST 10 SCOPE 3<br />

CATEGORIES IN THE<br />

<strong>ET</strong> <strong>CARBON</strong> RANKING<br />

UNIVERSE.<br />

Average Scope 3 as<br />

% of Total Intensity<br />

76%<br />

Average Scope 3 as<br />

% of Total Intensity<br />

Average Scope 1 and 2<br />

as % of Total Intensity<br />

24%<br />

Average Scope 1 and 2<br />

as % of Total Intensity<br />

Thus, in the Infrastructure sector we can<br />

see that Fuel and Energy-related Activities<br />

make up 99% of one company’s Scope 3<br />

emissions and Downstream Leased Assets<br />

make up 97% of another company’s Scope 3<br />

emissions. Both these categories are likely to<br />

be highly material. Conversely, Business Travel,<br />

Employee Commuting, Processing of Sold<br />

Products and Upstream Leased Assets make<br />

up no more than 1% of any company’s Scope<br />

3 emissions within the sector, suggesting these<br />

may not be material categories for this sector.<br />

The data sample includes all companies that<br />

are disclosing 10 or more Scope 3 categories.<br />

Thus, the percentages can be considered<br />

to be calculated on fairly complete Scope<br />

3 disclosures only. If relatively incomplete<br />

disclosures were included, then a sector<br />

with a company which disclosed only one<br />

category would have a 100% maximum<br />

percentage for that particular category.<br />

There are likely to be some categories which<br />

are material but are not highlighted in<br />

this table, because there has not yet been<br />

adequate disclosure. The <strong>ET</strong> Carbon Ranking<br />

methodology includes all Scope 3 categories<br />

in the analysis of companies in each sector.<br />

<strong>ET</strong> INDEX RESEARCH<br />

<strong>2016</strong> <strong>CARBON</strong> <strong>RANKINGS</strong> <strong>REPORT</strong>

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