How Trucost works

With the world's most comprehensive data on corporate environmental impacts, Trucost provides investors, fund managers and companies with:

  • The most efficient approach to measuring carbon and wider environmental impacts across investment portfolios, organizations and supply chains
  • Clear identification of prioritized focus areas for reducing environmental impacts
  • Validation of source data, including completion of gaps in data which are currently not being tracked or reported on
  • Comparison of environmental performance against peers, sectors and investment benchmarks
  • The ability to create environmentally-tilted investment products.

In order to deliver this, Trucost has developed a comprehensive approach to calculating quantitative environmental impact information.

Trucost’s environmental data model accounts for 464 industries worldwide, and tracks over 700 environmental impacts, from carbon and other greenhouse gases to water, waste, metals and chemicals. To assess a company’s environmental impacts, Trucost initially analyses the publicly available financial information from the company, in order to establish which industries the company is operating in. Trucost’s data model can then predict the environmental impact of the company, based on Trucost’s understanding of the industries it which it operates.

At this point, things get really interesting. Trucost enhances its data model by incorporating reported environmental data for each company, as available from the company’s own public and private disclosures. Trucost then provides each analyzed company with standardized, best practice environmental impact data for its global operations, and gives them the opportunity to respond with more information, which is then incorporated into the company profile. These disclosures are unique to Trucost, and enable the Trucost data model to be refined with actual information.

Once the data on a company has been fleshed out to the extent possible, Trucost can then generate information on a company's environmental impacts, assess which areas of operations need to be prioritised to reduce impacts, and enable comparisons with other companies in the same or other sectors.