Assessment of Algonquin Power & Utilities according to the management of its greenhouse gas emissions and of risks and opportunities related to the low-carbon transition.
Integrating into Operational Decision Making
Level 0: Unaware of Climate Change as a Business Issue
1. Does the company acknowledge climate change as a significant issue for the business?
Level 1: Acknowledging Climate Change as a Business Issue
2. Does the company recognise climate change as a relevant risk and/or opportunity for the business?
3. Does the company have a policy (or equivalent) commitment to action on climate change?
Level 2: Building Capacity
4. Has the company set greenhouse gas emission reduction targets?
5. Has the company published information on its Scope 1 and 2 greenhouse gas emissions?
Level 3: Integrating into Operational Decision Making
6. Has the company nominated a board member or board committee with explicit responsibility for oversight of the climate change policy?
7. Has the company set quantitative targets for reducing its greenhouse gas emissions?
8. Does the company report on Scope 3 emissions?
9. Has the company had its operational (Scope 1 and/or 2) greenhouse gas emissions data verified?
10. Does the company support domestic and international efforts to mitigate climate change?
11. Does the company have a process to manage climate-related risks?
12. Does the company disclose Scope 3 use of product emissions?
Level 4: Strategic Assessment
13. Does the company disclose its membership and involvement in organisations or coalitions dedicated specifically to climate issues?
14. Has the company set long-term quantitative targets for reducing its greenhouse gas emissions?
15. Does the company's remuneration for senior executives incorporate climate change performance?
16. Does the company incorporate climate change risks and opportunities in their strategy?
17. Does the company undertake climate scenario planning?
18. Does the company disclose an internal price of carbon?
19. Does the company ensure consistency between its climate change policy and the positions taken by trade associations of which it is a member?
Carbon Performance alignment of companies in the Algonquin Power & Utilities sector with the Paris agreement benchmarks.
The company has set targets to reduce its absolute emissions. To calculate this company’s targeted emissions intensity, TPI assumes that the company’s electricity generation grows according to the national or regional electricity generation growth rate projected in the IEA’s 2020 World Energy Outlook’s Stated Policies Scenario (STEPS). The company's target applies to Scope 1 and 2 emissions, which normally would not be accepted in TPI's electricity methodology because targets must be stated explicitly as referring to Scope 1 emissions from electricity generation. However, Algonquin Power & Utilities has made explicit that it will meet its target by closing a coal facility. We therefore assume that effectively their target will be applied to the emissions from electricity generation.