Set on tackling the Scope 3 or ‘hidden’ emissions, the Net-Zero Asset Owner Alliance conducts an in-depth sectoral analysis to clearly outline obstacles to Scope 3 integration and to offer ways forward for a multitude of stakeholders.

The challenges with Scope 3 emission accounting include data reliability and double counting. The
sector analysis also showed the discrepancies among the different sectors (oil and gas, utilities, and financials).

To chart a path forward, the paper underscores the importance of three key requirements:

• Reliable emission data should become available at company level.
• Policies that require transparent disclosures should be established across
  different jurisdictions.
• Asset owners should capitalise on increased data transparency and reliability.

For each of these requirements, the Alliance outlines actions points for the relevant stakeholders—corporates, policymakers, and asset owners.