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. Green Economics

    A methodology of economics that supports the harmonious interaction ...
  4. Carbon Trade

    An exchange of credits between nations designed to reduce emissions ...
  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 FAQS
  1. 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 ... Read Full Answer >>
  2. How did the financial crisis affect the oil and gas sector?

    The financial crisis had a negative impact on the oil and gas sector as it led to a steep decline in oil and gas prices and ... Read Full Answer >>
  3. Which segment of the oil and gas sector is most vulnerable if oil prices drop?

    The segment of the oil and gas sector that is most vulnerable if oil prices drop is small-cap explorers and producers. These ... Read Full Answer >>
  4. What methods can an oil and gas producer use to transport oil?

    Depending on the quantity, oil and gas producers can transport oil by land or by sea. For steady supplies on a long-term ... Read Full Answer >>
  5. Why do investors look at dayrates when evaluating an oil company's contracts?

    Investors look at day rates when evaluating an oil company's contracts because they have a large impact in determining earnings. ... Read Full Answer >>
  6. Is the high cost of installing solar panels justified by the money saved by going ...

    In favorable locations and under suitable conditions, homeowners can recuperate the cost of installing solar panels. The ... Read Full Answer >>
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. Charts & Patterns

    Should Investors Get Into Oil Now?

    Oil has enjoyed a steady climb after a violent plunge. Where is it going next, and how can investors profit?
  6. Fundamental Analysis

    The Economics Of Tesla Batteries

    Last week, Tesla announced its own line of commercial and residential batteries, called the PowerWall series, proving once again that no technical challenge is too great for Elon Musk.
  7. Investing News

    Europe's Oil Refineries Get A Second Chance

    The European refining sector is benefiting from the drop in oil prices, but it may not last the year. Can high margins beat structural overcapacity?
  8. Home & Auto

    Reduce Energy Costs By Making These Adjustments

    There are several ways you can reduce energy costs. These techniques range from minor tweaks to major renovations.
  9. Stock Analysis

    Today's Top ETFs: Worth a Bet or Should You Pass?

    ETFs can be profitable and dangerous. Here's a list of today's most popular funds and what you should watch about them.
  10. Mutual Funds & ETFs

    Are These 3 Alternative Energy ETFs Good Bets?

    Eyeing alternative energy? Consider these three ETFs to gain exposure.

You May Also Like

Hot Definitions
  1. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  2. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  3. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  4. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  5. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  6. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
Trading Center