The bottom-up and top-down approaches to carbon accounting are different ways of measuring, managing, and reporting an organization's greenhouse gas emissions. The bottom-up approach is more precise and detailed. The top-down approach is less precise and detailed. The choice of which approach to use will depend on an organization's specific circumstances and goals.
By considering ESG factors in their risk management processes, investors and risk managers can better understand and mitigate potential risks and capitalize on opportunities related to these important issues.