The climate indicator: a tool to support companies in their climate transition

1 The climate indicator, a public service tool for companies

Given the scale of the risks associated with climate change, the Banque de France is rolling out indicators designed to help companies assess their strategy and emissions trajectory, as well as their exposure to climate risks, on a voluntary basis.

To carry out this mission, the Banque de France is relying on its network of branches located across the country. Thanks to its longstanding business rating mission, the Banque de France has acquired a thorough understanding of the economic fabric and established a relationship of trust with companies, which facilitates dialogue with climate analysts and enables it to obtain the information needed to produce a robust assessment.

Providing free support to companies facing climate change challenges

The climate indicator is part of the Banque de France’s fundamental missions, and more specifically its mission to support companies, which are exposed to new risks linked to global warming and the energy transition, but also to new opportunities: reducing their dependence on fossil fuels, investing in more efficient technologies or materials, innovating to stay ahead of competitors, and mobilising their employees. In this context, the climate indicator enables companies to become more aware of the impacts of climate change, to evaluate the actions they have already taken or are planning to take, and to have at their disposal a benchmark indicator that can potentially be used with investors or other stakeholders, free of charge.

The climate indicator covers both dimensions of climate change: transition and adaptation

The transition to a low-carbon economy, with the transition climate indicator (TCI) 

This indicator compares the company’s future greenhouse gas emissions trajectory with its reference trajectory, as provided by the International Energy Agency (IEA) and in line with the Paris Agreement, i.e., limiting global warming to 1.5°C by 2100 (see Appendix). This indicator therefore enables each company analysed to assess its own alignment with the Paris Agreement trajectory.

The transition dimension of the climate indicator measures greenhouse gas (GHG) emissions within companies’ “scope of interest.” This scope of interest corresponds to the scope of GHG emissions that is most relevant with regard to the company’s activity, i.e., a majority of total emissions, and over which the company has decarbonisation levers. …