6th June, 2008

Vehicle manufacturers’ exposure to constraints on carbon dioxide emissions varies significantly. That was one of the key findings of analysis by environmental research organisation Trucost into seven European carmakers’ product-in-use risk exposure to proposed EU carbon performance standards.

Draft EU legislation that aims to limit average CO₂ emissions from new cars sold in the EU to 130g CO₂/km by 2012 was debated in the EU Environment Council yesterday. Targets for new car emissions may vary for each manufacturer due to technical reasons, and those which fail to meet their targets could face hefty fines from 2012.

Lack of disclosure on sales weighted average CO₂ emissions per passenger car in annual reports makes it difficult for investors to assess potential carbon risk from automotive products in use.

A Trucost Research Note published today shows that the sales weighted average of CO₂/km per passenger car varies significantly among manufacturers, with Porsche most exposed to the cost of product-in-use carbon constraints, and Peugeot S.A. least exposed.

Further analysis of production emissions found that Daimler AG is most exposed to indirect carbon costs during the production process. It is also most at risk from carbon costs from combined product in use and production carbon constraints, while Renault Group is least exposed.

Trucost Chief Executive Simon Thomas said: “Our analysis reveals a wide discrepancy in manufacturers' exposure to carbon costs, indicating that some could face significant penalties unless they improve vehicle and engine technology or modify business models to produce lower emitting vehicles.”

About Trucost

Trucost Plc is a world-leading environmental research organisation which helps companies and investors understand the environmental impacts of business activities. Trucost provides data and analysis on company emissions and natural resource usage in financial as well as quantity terms to help investors, fund managers and analysts understand how environmental issues could affect companies' future earnings. Institutional investors use the information to assess the carbon or environmental footprints of their portfolios, to identify differences in performance, to address environmental risks and create structured products with lower carbon or environmental impacts.

Trucost tracks data on the environmental impacts and disclosures of over 4,000 companies and has the world’s largest record of greenhouse gas emissions. Coverage includes the FTSE All-Share, S&P 500, Russell 1000, Nikkei 225, DJ STOXX 600, MSCI World Developed, MSCI Europe, MSCI Asia ex-Japan and ASX 200 indices.

Trucost has offered expert advice and research to major corporations, institutional investors and to Government departments and associated agencies since its launch in 2000. Trucost’s investor clients include BlackRock, CCLA Investment Management, Crédit Agricole Asset Management, Environment Agency Pension Fund, Fond de Réserve pour les Retraites (FRR), Fortis Investment Management, GLG Partners, Henderson Global Investors, Hermes Pensions Management Ltd, Merrill Lynch, Morley Fund Management and VicSuper.

For more information on Trucost please contact:

Theo Moore, Brunswick Group
Matt O’Leary, Brunswick Group
Tel: 0207 404 5959
Email: Theo Moore