In brief: CPP drafts transition reporting framework, invites comments

CPP Investments, the giant Canadian pension fund, has outlined a methodology to allow investors to work out what companies “can actually do today to abate greenhouse gas (GHG) emissions”. Its paper, The Future of Climate Change Transition Reporting, presents a proposal for “projecting the capacity of companies to abate emissions”.

In the pension’s own words:

• CPP Investments is proposing a framework and standardised template to measure the capacity of organisations to remove or “abate” their greenhouse gas emissions.
• The paper outlines the broad conceptual framework behind the template and explains the overall method of projecting an organisation’s abatement capacity.
• The vision is that this template can evolve to become a reporting standard that helps guide all stakeholders in accelerating the decarbonisation of our economy.
• To help inform the broader implementation of this recommended approach, CPP Investments has begun planning to test and refine Abatement Capacity Assessments of select holding companies in their active portfolio.

“We invite all interested parties to join us in refining this proposal and helping unlock its potential to become a decision-useful reporting standard that accelerates the greening of our economy,” the pension writes.