Table 3. Types of disclosure 0–5... | Emerald Publishing

Table 3.

Types of disclosure 0–5

Disclosure level	Definition	Examples
Type 0	Category and sub-categories not disclosed
Type 1	Disclosure addresses issues related to category definition at a general level, without details and insights → pure narrative (general)	“The climate change strategy is one of the priorities of the Board of Directors”. (Telefónica, 2022, p. 44). “Mediobanca has integrated Climate risks in its risk management processes”. (Mediobanca, 2022, p. 66). “The Enterprise Risk Assessment process also integrates the identification and monitoring of climate-related risks”. (Nexi, 2022, p. 7)
Type 2	Disclosure addresses issues related to the category and provides details → pure narrative (detailed)	“The decisions on how to integrate the assessment and effective management of climate change impacts into the different business processes are guided by the Sustainability Committee at top management level, which can rely on adequate responsibilities and a cross-functional vision across multiple Groups’ functions and geographies. This Committee, sponsored by the Group CEO, consists of the heads of both the GHO functions and business units”. (Generali, 2022, p. 5). “In the management of operations Leonardo monitors and increases the eco-efficiency of its sites through specific projects, also in collaboration with third-party partners in the energy sector, and the adoption and gradual extension of the ISO 14001 and ISO 50001 environmental management systems”. (Leonardo, 2022, p.6). “At company level, climate-related risks are identified and assessed (i.e., for the Group and subsidiaries) by integrating them into multi-disciplinary company-wide risk identification, assessment, and management processes, called Enterprise Risk Management (ERM). The ERM Model, developed in accordance with the COSO Framework1, provides an assessment of the strategic, external and operational risk events at Corporate, Sector and Subsidiaries level and the monitoring of the Top Risks, supplying an update of the risk profile for Saipem in relation to strategic and management objectives”. (Saipem, 2021, p. 8)
Type 3	Disclosure addresses issues related to numerically category with possible comparisons over the years → purely quantitative	“Variable Bonuses of the CEO and the Managing Director of airports (maximum of 60% of base salary) depend on compliance with company objectives […] for the CEO will be weighted at 25% above 100% of company objectives (20% above 100% in 2021), and for the Managing Director of the Airport, at 25% above 50% of the company objectives (10% above 50% in 2021). […] Regarding remuneration for Senior Management, variable bonuses will depend on compliance with company objectives […] will be weighted at 25% above between 50% and 40% of weighted company objectives for Senior Management”. (Aena, 2022, p. 19). “20% of the short-term variable remuneration includes sustainability targets, including GHG emission reductions. Furthermore, 10% of the long-term incentive of executive directors is linked to the offsetting/neutralisation of GHG emissions in order to meet Telefónica’s interim target by 2025, establishing a minimum threshold of 90% compliance”. (Telefónica, 2022, p. 45). “In 2021, Eni’s methane emissions were 1.37 MtCO₂ eq, stable compared to 2020 and essentially concentrated in Upstream activities (95% of the total)”. (Eni, 2021, p. 42)
Type 4	Disclosure addresses issues related to numerically category, including qualitative explanations, but does not provide a comparison across the years → narrative and quantitative	“During the 2021 financial year, the Board of Directors met fifteen times and the rate of Director participation in the meetings was 97%”. (Italgas, 2021, pp. 29–30). “Acciona has had a Sustainability Committee on the Board of Directors since 2009 […] The sustainability committee meets quarterly […]” (Acciona, 2020, p. 11). “Based on current objectives, this scenario would have an estimated financial impact of € 13.6 and 51.2 million by 2040, assuming a carbon price between € 20 and 75 per ton emitted”. (Grifols, 2022, p. 16)
Type 5	Any numerical disclosure to the category including qualitative statements and demonstrating year comparisons → narrative, quantitative and comparable	“In 2020 alone, the measures implemented resulted in a saving of 26,700 tonnes of CO₂ eq, measured against Saipem’s 2018 emissions baseline. It is estimated that, thanks to the GHG Strategic Plan, Saipem will not emit 255,000 tonnes of CO₂ eq into the atmosphere over the 2019–2024 timeframe”. (Saipem, 2021, p. 26). “Eni’s GHG Scope 1 emissions in 2021 amounted to 40.1 million tons of CO2 eq, up 6% compared to 2020, mainly due to the resumption of activities in the upstream and gas transport, power and chemicals sectors”. (Eni, 2021, p. 40). “In 2022, Snam’s total energy consumption amounted to 17,641 TJ, almost entirely attributable to natural gas (96.4%) used mainly for the operation of transportation, storage and regasification plants, for heating buildings and for automotive use. The regulated business accounts for 94% of the total (+18% compared to 2021) while the unregulated and energy transition business accounts for 6% (tenfold compared to 2021)”. (Snam, 2022, p. 54)

Disclosure level	Definition	Examples
Type 0	Category and sub-categories not disclosed
Type 1	Disclosure addresses issues related to category definition at a general level, without details and insights → pure narrative (general)	“The climate change strategy is one of the priorities of the Board of Directors”. (Telefónica, 2022, p. 44).“Mediobanca has integrated Climate risks in its risk management processes”. (Mediobanca, 2022, p. 66).“The Enterprise Risk Assessment process also integrates the identification and monitoring of climate-related risks”. (Nexi, 2022, p. 7)
Type 2	Disclosure addresses issues related to the category and provides details → pure narrative (detailed)	“The decisions on how to integrate the assessment and effective management of climate change impacts into the different business processes are guided by the Sustainability Committee at top management level, which can rely on adequate responsibilities and a cross-functional vision across multiple Groups’ functions and geographies. This Committee, sponsored by the Group CEO, consists of the heads of both the GHO functions and business units”. (Generali, 2022, p. 5).“In the management of operations Leonardo monitors and increases the eco-efficiency of its sites through specific projects, also in collaboration with third-party partners in the energy sector, and the adoption and gradual extension of the ISO 14001 and ISO 50001 environmental management systems”. (Leonardo, 2022, p.6).“At company level, climate-related risks are identified and assessed (i.e., for the Group and subsidiaries) by integrating them into multi-disciplinary company-wide risk identification, assessment, and management processes, called Enterprise Risk Management (ERM). The ERM Model, developed in accordance with the COSO Framework1, provides an assessment of the strategic, external and operational risk events at Corporate, Sector and Subsidiaries level and the monitoring of the Top Risks, supplying an update of the risk profile for Saipem in relation to strategic and management objectives”. (Saipem, 2021, p. 8)
Type 3	Disclosure addresses issues related to numerically category with possible comparisons over the years → purely quantitative	“Variable Bonuses of the CEO and the Managing Director of airports (maximum of 60% of base salary) depend on compliance with company objectives […] for the CEO will be weighted at 25% above 100% of company objectives (20% above 100% in 2021), and for the Managing Director of the Airport, at 25% above 50% of the company objectives (10% above 50% in 2021). […] Regarding remuneration for Senior Management, variable bonuses will depend on compliance with company objectives […] will be weighted at 25% above between 50% and 40% of weighted company objectives for Senior Management”. (Aena, 2022, p. 19).“20% of the short-term variable remuneration includes sustainability targets, including GHG emission reductions. Furthermore, 10% of the long-term incentive of executive directors is linked to the offsetting/neutralisation of GHG emissions in order to meet Telefónica’s interim target by 2025, establishing a minimum threshold of 90% compliance”. (Telefónica, 2022, p. 45).“In 2021, Eni’s methane emissions were 1.37 MtCO₂ eq, stable compared to 2020 and essentially concentrated in Upstream activities (95% of the total)”. (Eni, 2021, p. 42)
Type 4	Disclosure addresses issues related to numerically category, including qualitative explanations, but does not provide a comparison across the years → narrative and quantitative	“During the 2021 financial year, the Board of Directors met fifteen times and the rate of Director participation in the meetings was 97%”. (Italgas, 2021, pp. 29–30).“Acciona has had a Sustainability Committee on the Board of Directors since 2009 […] The sustainability committee meets quarterly […]” (Acciona, 2020, p. 11).“Based on current objectives, this scenario would have an estimated financial impact of € 13.6 and 51.2 million by 2040, assuming a carbon price between € 20 and 75 per ton emitted”. (Grifols, 2022, p. 16)
Type 5	Any numerical disclosure to the category including qualitative statements and demonstrating year comparisons → narrative, quantitative and comparable	“In 2020 alone, the measures implemented resulted in a saving of 26,700 tonnes of CO₂ eq, measured against Saipem’s 2018 emissions baseline. It is estimated that, thanks to the GHG Strategic Plan, Saipem will not emit 255,000 tonnes of CO₂ eq into the atmosphere over the 2019–2024 timeframe”. (Saipem, 2021, p. 26).“Eni’s GHG Scope 1 emissions in 2021 amounted to 40.1 million tons of CO2 eq, up 6% compared to 2020, mainly due to the resumption of activities in the upstream and gas transport, power and chemicals sectors”. (Eni, 2021, p. 40).“In 2022, Snam’s total energy consumption amounted to 17,641 TJ, almost entirely attributable to natural gas (96.4%) used mainly for the operation of transportation, storage and regasification plants, for heating buildings and for automotive use. The regulated business accounts for 94% of the total (+18% compared to 2021) while the unregulated and energy transition business accounts for 6% (tenfold compared to 2021)”. (Snam, 2022, p. 54)

Source: Authors’ own work