If you own 10% of Company A for the first two quarters and 0% for the rest of the year, you calculate your share of emissions as the average over four quarter-ends: 10% × 5000 tCO2e in Q1, 10% × 5000 tCO2e in Q2, and 0 in Q3 and Q4. The calculation: (0.1·5000 + 0.1·5000 + 0 + 0) / 4 = 250 tCO2e to report for that company.
CO2 emissions for Company A are 5000 tonnes. If a financial market participant holds 10% of the company the first 6 months of the reference period for reporting and 0% the remaining 6 months of the period, which formula should be used for the calculations, following the Article 6(3) RTS provision that calculations should be made through quarterly and end of year reporting?
“9. With regard to the calculation of indicators on GHG emissions, it is worth noting that in some cases an investee company’s emissions may change throughout a reference period and the size of the investment in that company may evolve too. For instance, the CO2e emissions for Company A could be 5000 tonnes and a financial market participant could hold 10% of the company the first 6 months of the reference period for reporting and 0% the remaining 6 months of the period. 10. In such a case, the ESAs note that for the purposes of the disclosures of principal adverse impacts of investment decisions on sustainability factors, the assessment of the impact should be based on, at least, the average of four calculations made on 31 March, 30 June, 30 September, and 31 December of a calendar year reference period (year N)4.
European Supervisory Authorities (ESAs)
