Principles of Planet Metrics

Principles of Planet Metrics

Core Planet Metrics

Climate Change

Greenhouse Gas (GHG) emissions
For all relevant greenhouse gases (e.g. carbon dioxide, methane, nitrous oxide, F-gases etc.), report in metric tonnes of carbon dioxide equivalent (tCO2e) GHG Protocol Scope 1 and Scope 2 emissions. Estimate and report material upstream and downstream (GHG Protocol Scope 3) emissions where appropriate.

GHG emissions are the primary driver of rising global temperatures and therefore a key focus for policy, regulatory, market and technology responses to limit climate change. As a result, business models associated with significant emissions are likely to be more impacted by risks in the transition to a low carbon economy. While challenges remain in the accurate quantification of Scope 3 emissions, companies across all major sectors of the economy already report on Scope 3 emissions and in the context of the transition to a low carbon economy, material Scope 3 emissions may have a significant bearing on a company’s potential for long term value creation.

Adapted from GRI 305:1-3, GHG Protocol

Climate Change

TCFD implementation
Fully implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). If necessary, disclose a timeline of at most three years for full implementation. Disclose whether you have set, or have committed to set, GHG emissions targets that are in line with the goals of the Paris Agreement – to limit global warming to well-below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C – and to achieve net-zero emissions before 2050

The TCFD recommendations are already established as the primary framework for disclosure of information on the management of climate-related risks and opportunities in main annual filings and they emphasize the importance of GHG emissions targets that are in line with the goals of the Paris Agreement.

CDSB R01, R02, R03, R04 and R06; SASB 110

Nature Loss

Land use and ecological sensitivity
Report the number and area (in hectares) of sites owned, leased or managed in or adjacent to protected areas and/or key biodiversity areas (KBA). Key biodiversity areas (KBA) provide a science-based and internationally recognized means of identifying sites contributing significantly to the global persistence of biodiversity while protected areas indicate nationally (and often internationally) recognized areas of ecological or cultural importance, typically with specific legal protections. Having operations inside or close to such areas indicates heightened risk of adverse impacts on biodiversity and heightened risk of exposure to associated legal or reputational risk.

GRI (304-1)

Fresh Water Sustainability

Water consumption and withdrawal in water-stressed areas
Report for operations where material, megalitres of water withdrawn, megalitres of water consumed and the percentage of each in regions with high or extremely high baseline water stress according to WRI Aqueduct water risk atlas tool.
Estimate and report the same information for the full value chain (upstream and downstream) where appropriate

Water consumption and water withdrawal in water-stressed areas are indicators of the potential for negative societal impacts (resulting from competition with other water users) and associated business risks including the potential for operational disruptions and shutdowns.

SASB (CG-HP-140a.1.),
WRI Aqueduct water risk atlas tool
https://www.wri.org/aqueduct

Expanded Planet Metrics

Climate Change

Paris-aligned GHG emissions targets
Define and report progress against time-bound science-based GHG emissions targets that are in line with the goals of the Paris Agreement – to limit global warming to well-below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C. This should include defining a date before 2050 by which you will achieve net-zero greenhouse gas emissions and interim reduction targets based on the methodologies provided by the Science Based Targets initiative if applicable.
If an alternative approach is taken, disclose the methodology used to calculate the targets and the basis on which they deliver on the goals of the Paris Agreement.

The Paris agreement on climate change sets a long-term goal to keep the increase in global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the increase to 1.5 °C, recognizing that this would substantially reduce the risks and impacts of climate change. All actors including businesses need to play their part in delivering on this goal if we are to avoid the worst effects of climate change. In June 2020, countries representing more than half of global GDP have set or committed to set net zero by 2050 targets and more than 900 companies have published Science Based Targets consistent with the Paris Agreement. As such, defining emissions targets that are at least consistent with the meeting the goal of the Paris Agreement is fast becoming the minimum expectation for businesses.

Science-Based Targets initiative

Nature Loss

Land use and ecological sensitivity
For operations (if applicable) and full supply chain (if material):
1.Area of land used for the production of basic plant, animal or mineral commodities (e.g. the area of land used for forestry, agriculture or mining activities).
2.Year-on-year change in the area of land used for the production of basic plant, animal or mineral commodities.
3.Percentage of land area in (1) or of total plant, animal and mineral commodity inputs by mass or cost, covered by a sustainability certification standard or formalized sustainable management programme. Disclose the certification standards or description of sustainable management programmes along with the percentage of total land area, mass or cost covered by each certification standard / programme.

Growth in demand for land is the primary underlying driver of new conversions of ecosystems, which is in turn the primary driver of nature loss. The overall area of land used in operations and supply chain reflects the contribution of the current business model to overall demand for land; and the year on year change indicates whether the company is currently contributing to increasing or decreasing pressure for new conversions of ecosystems. The proportion covered by a sustainability certification standard or other formalized sustainable management programme is an indicator of how much of the land that is used is being actively managed for long term value creation.

Note: Supply-chain figures can initially be estimated where necessary based on the mass of each commodity used and the average mass produced per unit of land in different sourcing locations.

New metric

Nature Loss

Impact of land use and conversion
Report wherever material along the value chain, the valued societal impact of use of land and conversion of ecosystems.

Reporting valued impact in monetary terms provides a meaningful indication of the scale of impacts in units that can be readily understood by executives and compared across impact areas and with financial figures. Valuation of environmental impacts is increasingly recognized as the most efficient and effective way of incorporating as much relevant contextual information as possible in order to provide estimates of actual impact, rather than simply measures of output as is the case with most quantitative environmental metrics.

Natural Capital Protocol (2016)
ISO 14008 Monetary valuation of environmental impacts and related environmental aspects (2019)
Value Balancing Alliance
https://www.value-balancing.com/

Fresh water availability

Impact of freshwater consumption and withdrawal
Report wherever material along the value chain, the valued societal impact of freshwater consumption and withdrawal.

Reporting valued impact in monetary terms provides a meaningful indication of the scale of impacts in units that can be readily understood by executives and compared across impact areas and with financial figures. Valuation of environmental impacts is increasingly recognized as the most efficient and effective way of incorporating as much relevant contextual information as possible in order to provide estimates of actual impact, rather than simply measures of output as is the case with most quantitative environmental metrics.

Natural Capital Protocol (2016);
ISO 14008 Monetary valuation of environmental impacts and related environmental aspects (2019);
Value Balancing Alliance
https://www.value-balancing.com/

Air Pollution

Report wherever material along the value chain: Nitrogen oxides (NOx), sulphur oxides (SOx), particulate matter and other significant air emissions. Wherever possible, estimate the proportion of specified emissions that occur in or adjacent to urban/densely populated areas.

Localized air pollution, in the form of fine particulate matter and oxides of sulfur and nitrogen, is a leading cause of ill health and premature death around the world. Emissions in densely populated areas tend to be particularly harmful because they contribute to high ambient concentrations of pollution and affect a large number of people.

GRI 305-7

Air Pollution

Report wherever material along the value chain, the valued impact of air pollution, including nitrogen oxides (NOx), sulfur oxides (SOx), particulate matter and other significant air emissions. Reporting valued impact in monetary terms provides a meaningful indication of the scale of impacts in units that can be readily understood by executives and compared across impact areas and with financial figures. Valuation of environmental impacts is increasingly recognized as the most efficient and effective way of incorporating as much relevant contextual information as possible in order to provide estimates of actual impact, rather than simply measures of output as is the case with most quantitative environmental metrics.

Natural Capital Protocol (2016)
ISO 14008 Monetary valuation of environmental impacts and related environmental aspects (2019)
Value Balancing Alliance
https://www.value-balancing.com/

Water Polution

Nutrients. Estimate and report wherever material along the value chain, metric tonnes of nitrogen, phosphate and potassium in fertilizer consumed.

Keeping nitrogen, phosphorus and potassium cycles in balance is critical to the effective functioning of ecosystems. Current agricultural practices have pushed bioavailable levels of nitrogen, phosphorus and potassium far beyond sustainable thresholds in many parts of the world, leading to freshwater and oceanic dead-zones and a host of other ecological and public health issues. “Biogeochemical flows” (of nitrogen and phosphorous) is one of only two of the nine planetary boundaries that is already deemed to have been breached. As such, all organizations with significant agricultural operations or supply chains are recommended to identify their exposure to this global problem.

SASB (CN0101-11)

Water pollution

Impact of water pollution
Report wherever material along the value chain, the valued societal impact of water pollution, including excess nutrients, heavy metals and other toxins.

Reporting valued impact in monetary terms provides a meaningful indication of the scale of impacts in units that can be readily understood by executives and compared across impact areas and with financial figures. Valuation of environmental impacts is increasingly recognized as the most efficient and effective way of incorporating as much relevant contextual information as possible in order to provide estimates of actual impact, rather than simply measures of output as is the case with most quantitative environmental metrics.

Natural Capital Protocol (2016)
ISO 14008: Monetary valuation of environmental impacts and related environmental aspects (2019)
Value Balancing Alliance
https://www.value-balancing.com/

Solid waste

Single use plastics
Report for the full value chain, estimated metric tonnes of single-use plastic consumed.
Disclose the most significant applications of single use plastic identified, the quantification approach used and the definition of "single-use plastic" adopted.

Metrics for reporting on single use plastics have not yet been standardized, but the global scale of negative impacts associated with their use is sufficient to justify additional investigation of corporate value chains to identify their principle applications and the scale of their use. Experimenting with measurement will help the company understand its exposure to an issue of high public concern and disclosing the results and approach will help to advance understanding of the issues more widely.

New metric

Solid waste

Impact of solid waste disposal
Report wherever material along the value chain, the valued societal impact of solid waste disposal, including plastics and other waste streams.

Reporting valued impact in monetary terms provides a meaningful indication of the scale of impacts in units that can be readily understood by executives and compared across impact areas and with financial figures. Valuation of environmental impacts is increasingly recognized as the most efficient and effective way of incorporating as much relevant contextual information as possible in order to provide estimates of actual impact, rather than simply measures of output as is the case with most quantitative environmental metrics.

Natural Capital Protocol (2016)
ISO 14008: Monetary valuation of environmental impacts and related environmental aspects (2019)
Value Balancing Alliance
https://www.value-balancing.com/

Resource availability

Resource circularity
Report the most appropriate resource circularity metric(s) for the whole company and/or at a product, material or site level as applicable. Potential metrics include (but are not limited to) the "Circular Transition Indicators" (WBCSD & KPMG), indicators developed by the Ellen MacArthur Foundation and company developed metrics.
Disclose the methodological approach used to calculate the chosen circularity metric(s) and the rationale for the choice of metric(s).

Metrics for reporting on resource circularity have not yet been standardized but some promising example metrics have been developed and tested by multiple companies. Applying emerging circularity metrics and disclosing the results will help to progress this fundamentally important area. It also indicates proactive engagement with the risks and opportunities presented by the circular transition and can be used to demonstrate progress towards genuine resource sustainability.

WBCSD & KPMG "Circular Transition Indicators"
Ellen MacArthur Foundation "Circulytics™ indicators"

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