Income Responsibility Principle

Definition

Income Responsibility Principle is an alternative responsibility principle. As a counterpart to the upstream responsibility in a supply chain, the downstream responsibility in a sales chain requires suppliers be responsible for the emissions generated from all downstream stages.

Because of their supply, the downstream producers are enabled directly or indirectly to produce and hence to emit. The suppliers benefit from the emissions by obtaining income and therefore should assume the responsibility. ‘Enabled emissions’ (of Financed Emissions in the context of financial intermediaries) is used as an indicator to assess such downstream responsibility or income responsibility principle

See Also

• Producer Responsibility Principle