Climate Data Steering Committee announces next steps for groundbreaking net-zero public data utility, white paper recommendations [news release]
Today, the Climate Data Steering Committee (the Committee) outlined next steps on its recommended plans for the Net-Zero Data Public Utility (NZDPU). The open-data public utility will collect and aggregate net-zero climate transition data by drawing on private sector climate commitments. The Committee intends that the NZDPU will bring transparency to efforts to transition to a net-zero economy by addressing data gaps, inconsistencies, and barriers to information that slow climate action. It will provide accurate, trusted and verifiable climate transition-related data, openly available in a single place for the first time.
Since its formation in June by French President Emmanuel Macron and UN Special Envoy for Climate Ambition and Solutions Michael R. Bloomberg, the Committee, chaired by Mary Schapiro, has released draft recommendations for the NZDPU and solicited feedback from a wide range of stakeholders and experts. Supported by Bloomberg Philanthropies, today’s final white paper lays out the key data challenges and sets out recommendations for necessary foundational data that is needed to help solve these challenges. This foundational data should be included in the initial phase of the NZDPU, such as current and historical GHG emissions data across Scopes 1, 2 and 3, detailed fields capturing emissions reduction targets and use of carbon credits, and data identifying the assurance and verification of disclosure.
The lack of availability of accessible, high-quality, and consistent data remains one of the biggest challenges for organizations’ development and implementation of net-zero transition plans. Civil society, investors, regulators, and policy makers similarly require this data to compare and evaluate those plans. The NZDPU will arm financial institutions with the information they need from the companies they finance so that they can then develop and execute on their own transition plans. The utility also will support efforts in developing and developed nations to enhance transparency for business climate action commitments and will be available to the market, regulators, climate scientists, and civil society.
To support these goals, the Committee and CDP are collaborating on efforts to provide the NZDPU with a foundational layer of data. CDP’s disclosure mechanism is a leading global platform where this depth of information can be disclosed, with nearly 20,000 disclosing entities in 2022. To better serve stakeholders who want to evaluate progress against transition planning guidance, the Committee recommends that the NZDPU and CDP work with regulators setting disclosure standards to integrate their reporting requirements into the data portal.
By providing freely available data capturing the breadth and depth of emissions and target reporting, the NZDPU provides a powerful feedback mechanism for financial institutions, companies, and governments. The Committee recommends that the data uploaded in the NZDPU will be freely available on an open basis as a public good for stakeholders to use as they see fit. Going forward, stakeholders will be able to track companies and financial institutions’ climate progress, including through highlighting gaps between their metrics and targets and headway relative to peers. In this way stakeholders can assess the extent to which any shortfalls in progress are idiosyncratic, reflecting the institution itself, or the product of broader factors. The Committee has also published today a Request for Proposals to build out a beta pilot of the Net Zero Data Public Utility. Submissions will be due by February 15, 2023, with the goal of one or more technical providers being selected by the end of Q1 2023.
The following groups have been set up to work alongside the Committee and provide expert input through the Utility’s development:
Civil Society and Expert Advisory Panel
Financial Institution focus group
Assurance and Verification Providers focus group
The following group is in the process of being established: Corporate focus group
Sign up forms for the existing focus groups are available at www.nzdpu.com. and members will be added on a rolling basis. It is anticipated that a beta pilot of the NZDPU will be up and running in the second half of 2023.
The intention is for the NZDPU pilot to ultimately be hosted by the United Nations Framework Convention on Climate Change (UNFCCC) Global Climate Action Portal.
The Committee is dedicated to regional diversity and supporting a just transition. Members of the Committee include representatives from:
-- Developed and developing countries, including Chile, France, Gabon, Ghana, Singapore, Switzerland, and the United Kingdom;
-- Policymakers and relevant bodies, including the European Commission and European Financial Reporting Advisory Group (EFRAG);
-- International organizations and global standard setters are also part of the Committee, including the United Nations (UN), Organization for Economic Co-operation and Development (OECD), Financial Stability Board (FSB), International Organization of Securities Commissions (IOSCO), International Sustainability Standards Board (ISSB), Network for Greening the Financial System (NGFS), International Energy Agency (IEA), CDP; and
-- Data service providers, including Bloomberg LP, London Stock Exchange Group, Moody’s, Morningstar, MSCI Inc., and S&P Global.
NZPDU:
https://www.nzdpu.com/
White paper:
https://assets.bbhub.io/company/sites/71/2022/11/development-of-the-net-zero-data-public-utility-november-2022.pdf
Recommendations development process:
https://assets.bbhub.io/company/sites/71/2022/11/nzdpu-recommendation-development-process-2022.pdf
News release:
https://www.nzdpu.com/climate-data-steering-committee-announces-next-steps-for-groundbreaking-net-zero-data-public-utility/