Trucost has the largest database of the environmental impacts of companies in the world and this data is standardised to create a consistent data set on each company including those companies that do not disclose. This enables integration of external environmental costs into financial ratios for scenario analysis and to assess materiality and risk in investments.

For example data can be integrated to create:

• Company Impact Ratios (environmental cost / turnover)
• Profit at Risk (environmental cost / EBITDA)
• TRUEVA (Economic Value Added (EVA) minus external environmental costs)

The goal of PRI is to improve returns to beneficiaries. Back testing of Trucost data has shown that integrating Trucost environmental data into your investment process can enable you to achieve this.

Back testing of funds that incorporate Trucost environmental data into investment decisions have shown it is possible to achieve:

1. Better environmental performance while matching financial returns for an index thus positioning portfolios to benefit from rising environmental costs
2. There is increasing evidence that environmentally efficient companies are achieving superior financial returns (GLG Environment Fund )

Trucost data is available by subscription to Trucost Online, providing access to Company Briefings on 3,500 companies worldwide as well as online modelling capabilities allowing investors to model different pricing scenarios in response to increasing environmental regulation, taxes and the emergence of financial instruments which place a monetary value on environmental use such as the EU ETS.