Temperature Score

The Temperature Score is a unique new metric that quantifies the extent to which corporations across the world are contributing to the rise in global temperature.

Interview with Andreas Feiner, CEO of Arabesque S-Ray GmbH
Andreas Feiner, CEO of Arabesque S-Ray, introduces the new Temperature Score, and explains how it can help increase transparency around corporate emissions reporting for all stakeholders.

How Does It Work?

By translating publicly reported greenhouse gas emissions from each company to a Celsius degree temperature, based on sector specific emissions pathways, the Temperature Score recognises the companies that are leaders in climate action. It provides a simple and tangible metric for making comparisons on climate impact between companies, for all stakeholders.

Scoring

Each company is given a score of 1.5, 2, 2.7 or >2.7°C. This represents the increase in global temperature if every other company were to behave like them. Companies that do not fully and publicly report their emissions data are given an incomplete disclosure score of 3°C.

Emissions Intensity Ratio

The Temperature Score uses the metric of emissions intensity ratio (EIR) to translate company emissions into a temperature score. An EIR is the greenhouse gas (GHG) emissions per unit of economic value added, which measures the degree of coupling between emissions and economic growth. A smaller number means that there is less coupling – so the growth of the company is less strongly tied to increased emissions. Company EIR is calculated by summing the Scope 1 and Scope 2 emissions, and dividing by the company’s revenue.

Near/Long-term

Each company receives a near-term score, evaluated in 2030, and a longer-term score, evaluated in 2050. It is assumed that unless a company has set an emissions target approved by the Science Based Targets initiative (SBTi), their emissions intensity will not change over time.

Sector

To generate a company’s score its EIR is compared to benchmark EIRs calculated using scenarios from the International Energy Agency (IEA). The benchmarks are sector-specific, based on the IEA sector classification: Power, Industry, Transport, Other.

What are the extra features?

The Temperature Score is calculated for each company weekly along with three additional indicators. These indicators signal how well a company is doing in regard to climate action, adding further granularity to the Temperature Score by highlighting companies that have a good awareness of emissions across the value chain and are making efforts to reduce them.

Scope 3

Does the company report some part of their Scope 3 emissions?

Target

Does the company have a target with the Science Based Targets initiative to reduce GHG emissions to a level compatible with a 2°C scenario?

Trend

Have the company’s recent emissions reductions followed the pathway that is required to reach net zero emissions and limit global temperature rise to 1.5°C?

How do companies score?

Analysis from the Temperature Score shows that whilst just over half of companies (53%) covered have a near term score that aligns with the most ambitious Paris Agreement goal of keeping global temperature rise to 1.5°C, only a fifth of companies (20%) are expected to remain on this pathway by 2050 without taking drastic steps to reduce GHG output. ​

Roughly one quarter of companies have an incomplete disclosure score of 3°C meaning that these companies do not fully report their Scope 1 and Scope 2 emissions. Without public scrutiny of reported data, we cannot verify whether companies are taking the necessary steps to reduce their impact on climate change. ​

Universe by Temperature Score