RED FLAG # 25
Activities, products and/or services that significantly contribute to cumulative greenhouse gas emissions and the resulting physical climate change impacts that negatively affect people’s rights
FOR EXAMPLE
- The extraction, refining, distribution, sale and/or use of oil, tar sands, oil shale gas or natural gas
- The mining, processing, sale, and combustion of coal
- Companies that depend heavily on:
- Industrial land-use that results in extensive deforestation or other emissions-intensive land-use change (e.g., for palm-oil plantations or industrial livestock farming; see also Red Flags 12 & 13)
- Industrial processes that produce significant greenhouse gas (GHG) emissions (e.g., steel and cement production, aluminum refining and smelting, fertilizer production)
- Intensive non-renewable fuel/energy use (e.g., technology data centers or large infrastructure in certain geographies, international shipping and aviation)
- Companies whose principal products depend heavily upon non-renewable fuel/energy use (e.g., automotive, shipbuilding and aerospace manufacturing, energy inefficient products)
HIGHER-RISK SECTORS
- Oil and gas exploration, extraction and transportation
- Coal mining, processing and transportation
- Fossil fuel-based power generation (e.g., lignite, coal, oil and natural gas)
- Carbon-intensive industrial sectors (e.g., petrochemicals, steel, iron, cement, aluminum and construction inputs)
- Industrial-scale conventional agriculture (e.g., industrial livestock farming, palm oil plantations, and other commercial farming activities)
- Forestry and forest products
- Large-scale transportation (e.g., industrial land transport, marine shipping, aviation)
- Transportation manufacturing (e.g., automotive, shipbuilding, aerospace)
- Large-scale infrastructure, including real estate
- Information and Communication Technology (see also Red Flag 21)
- Financial institutions that are significantly financing higher-risk industries that lack robust transition planning
Business Model Red Flags
Tool for Indicator Design



