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CDP Climate Change 2022 Reporting Guidance

(C4.3c) What methods do you use to drive investment in emissions reduction activities?

Question dependencies

This question only appears if you select “Yes” in response to C4.3.

Change from last year

No change

Rationale

This question provides data users with more transparency into your organization’s approach to realizing emissions reductions and progress towards targets.

Connection to other frameworks

SDG

Goal 7: Affordable and clean energy

Goal 13: Climate action

Response options

Please complete the following table. You are able to add rows by using the “Add Row” button at the bottom of the table.

Method Comment

Select from:

  • Compliance with regulatory requirements/standards
  • Dedicated budget for energy efficiency
  • Dedicated budget for low-carbon product R&D
  • Dedicated budget for other emissions reduction activities
  • Employee engagement
  • Financial optimization calculations
  • Internal price on carbon
  • Internal incentives/recognition programs
  • Internal finance mechanisms
  • Lower return on investment (ROI) specification
  • Marginal abatement cost curve
  • Partnering with governments on technology development
  • Other

Text field [maximum 2,400 characters]

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Requested content

General

  • This question is intended to gather information on the ways in which capital is directed towards emissions reduction activities within your company, and/or the way in which initiatives are identified. If your company uses an internal carbon price you are encouraged to report this here in addition to in C11.

Method (column 1)

  • Select the types of methods that you employ to help to channel funds towards emissions reduction initiatives.

Comment (column 2) (optional)

  • Provide additional details or examples as necessary.

Additional information

Marginal Abatement Cost Curves

  • Marginal Abatement Cost Curves, or MACCs, provide a method of evaluating potential emissions reduction activities. They provide a visual comparison of the marginal abatement costs for different projects.
  • MACCs can be generated to evaluate options at any level of organization – from individual business divisions, to the overall business and to sectors and countries, evaluating individual projects, programs or policies.
  • Marginal abatement costs are calculated by dividing the costs of the project (calculated from the initial cost minus any savings made as a result of the project) by the greenhouse gas emissions saved over a specified investment timeframe.

  • Those projects/initiatives on the “left hand side” of the MACC are those where there are cost savings to be made over the lifetime of the project as a result of the emissions savings made, and therefore, even without a commitment to carbon reduction investment, should be implemented from a cost saving point of view. Where the bars extend above the line, positive costs are associated with the proposals. Here the MACC curve can be used to suggest the lowest cost options for achieving a particular target. Using the example above, savings of 9.5MtCO 2 can be made at costs of less than €40/tonCO2.
  • As with all evaluation methods, the accuracy of the MACC will depend on that of the input data.