Real Transparency

To provide guidance on the largest industrial sectors, Signal Climate Analytics is creating graphical summaries of Real Transparency, as published in recent Signal reports (e.g. D. Lubin, et al, Automotive Industry: Real Transparency, 2023) on the Calvert Center for Responsible Investing. Real Transparency is disclosure of the metrics that matter most to allow for meaningful comparison of sector peers as well as assessment against global climate policy with the following elements:

• Peer comparison with a sector specific global intensity metric normalized by production volumes (see “keystone metrics” in Signal reports or the ISSB standards for these) 

• Policy alignment assessment with measurement of improvement in absolute emissions over time, along with all assumptions that go into the calculation

• Forecasting of both metrics for the near and intermediate term when current management has accountability for climate risk mitigation.

The core concept here is to identify those few measures that are essential for meaningful assessment of company performance. These essential metrics can and should be supported by a broad set of supplemental metrics and measures, based on current and emerging guidance. In our view when firms omit disclosure of those metrics that matter most ‘real transparency’ is not possible.

However, when disclosed Real Transparency gives management and stakeholders the capacity to measure and manage climate risk as part of a larger business transformation strategy.

Beginning with auto sector, these Real Transparency summaries identify the metrics that matter most for both emerging regulatory disclosure compliance and for alignment with global policy goals on decarbonization. The summaries will be updated on an ongoing basis and they can be found subscribed to on our Real Transparency page.