Carbon Disclosure Rating

AAA

DEFINITION of 'Carbon Disclosure Rating'

A numerical score that indicates the level of reporting of a company's climate change initiatives. The carbon disclosure rating for a company is based on its response to the Climate Disclosure Project's (CDP) climate change questionnaire. A high carbon disclosure rating would indicate a comprehensive response to the questionnaire, as well as sound understanding and management of climate change-related issues - including greenhouse gas emissions - relevant to the company.

INVESTOPEDIA EXPLAINS 'Carbon Disclosure Rating'

The carbon disclosure ratings are based on a methodology developed by the U.K.-based CDP, in consultation with its global advisor, PricewaterhouseCoopers. Note that the carbon disclosure score is not a reflection of the actions taken by the company to mitigate its impact on climate change and offset its carbon footprint, but is simply indicative of its level of disclosure with regard to these issues. Most of the world's largest companies have a carbon disclosure rating.

RELATED TERMS
  1. Carbon Dioxide Tax

    A tax on businesses and industries that produce carbon dioxide ...
  2. Cap And Trade

    A regulatory system that is meant to reduce certain kinds of ...
  3. Carbon Trade

    An exchange of credits between nations designed to reduce emissions ...
  4. Green Economics

    A methodology of economics that supports the harmonious interaction ...
  5. Carbon Credit

    A permit that allows the holder to emit one ton of carbon dioxide. ...
  6. Kyoto Protocol

    An international agreement that aims to reduce carbon dioxide ...
Related Articles
  1. Active Trading

    Cheap Steps To Reduce Your Carbon Footprint

    Making small adjustments to your habits and lifestyle can have big payoffs.
  2. Bonds & Fixed Income

    Green Bonds: Fixed Returns To Fix The Planet

    Fixed-income investors are no longer left out of the green investing revolution.
  3. Economics

    Carbon Trading: Action Or Distraction?

    These credits claim to allow buyers to reduce their carbon footprints. Find out how.
  4. Entrepreneurship

    Can Business Evolve In A Green World?

    Learn how global warming is starting to heat up America's corporate climate.
  5. Investing

    What is the carbon trade?

    The carbon trade came about in response to the Kyoto Protocol. Signed in Kyoto, Japan, by some 180 countries in December 1997, the Kyoto Protocol calls for 38 industrialized countries to reduce ...
  6. If you need to ship titanic volumes of sundry products across sweeping distances, nothing's better than rail, where Union Pacific is a titan.
    Stock Analysis

    How Union Pacific Makes Its Money

    If you need to ship titanic volumes of sundry products across sweeping distances, nothing's better than rail, where Union Pacific is a titan.
  7. Chart Advisor

    Commodities Set Up For A Continued Move Lower

    Commodities have been suffering since late summer, and unfortunately for the bulls it doesn’t appear that the situation is about to change anytime soon.
  8. Chart Advisor

    OPEC's Decision Sends Oil Stocks Lower

    OPEC’s decision to keep oil production on cruise control has led to declining prices. Here's a look at 3 oil stocks that have followed suit.
  9. Gasoline prices have been dropping lately after holding fairly steady for a year or so, following world oil prices.
    Personal Finance

    How Long Will Lower Energy Prices Last?

    Gasoline prices have been dropping lately after holding fairly steady for a year or so, following world oil prices.
  10. U.S. economy continues to improve, pushing U.S. stocks to another record close and suggesting that the Fed should start normalizing U.S. monetary policy.
    Economics

    Are Oil Prices Helping Or Affecting Global Economy?

    U.S. economy continues to improve, pushing U.S. stocks to another record close and suggesting that the Fed should start normalizing U.S. monetary policy.

You May Also Like

Hot Definitions
  1. Risk-Free Rate Of Return

    The theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would ...
  2. Scarcity

    The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, ...
  3. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. The ...
  4. Christmas Tree

    An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at ...
  5. Christmas Club

    A short-term savings account that usually pays out the full account balance to its account holders once each year, right ...
  6. Boston Snow Indicator

    A market theory that states that a white Christmas in Boston will result in rising stock prices for the following year. For ...
Trading Center