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"At a carbon cost of US$60/tCO2e, as much as 10% of the total cash flow of listed companies could be transferred from companies with below average carbon efficiency to those with above average efficiency."

Portfolio Footprint

A portfolio footprint measures the environmental efficiency of a fund's aggregated holdings and compares this to a chosen benchmark. This measure enables asset owners and asset managers to identify and manage the environmental risks and opportunities associated with their investments.

Trucost measures the environmental impacts of every company in a portfolio and index (not just those that disclose environmental data), and pinpoints the effect of stock and sector decisions on overall environmental performance. Trucost has a widely endorsed methodology for calculating portfolio footprints and has analysed funds representing over $1 trillion in assets across over 1000 portfolios globally.

Benefits for Asset Owners

Trucost Portfolio Footprints enable asset owners to identify where material environmental risk lies across their portfolio and demonstrate to beneficiaries and stakeholders that this risk is being managed in a systematic way. The report can form a starting point for informed and focused engagement activity on behalf of asset owners by showing principle target areas within any set of investments, prioritised by environmental intensity and disclosure quality.

Having partnered with Mercer Investment Consultants, Northern Trust and Style Research, Trucost's portfolio footprints are now available to asset owners through a variety of channels.

Benefits for Asset Managers

Trucost Portfolio Footprints highlight the variation in carbon and resource intensity between same sector companies, helping fund managers to identify environmental risk and capitalise on investment opportunities. Fund managers can also demonstrate to new and existing clients that potential carbon risks to company earnings and valuations are being measured and managed in a systematic way.

Footprint reports enable fund managers to understand the basis for how their fund is rated by Mercer for manager selection reports and manager research notes and also helps to fulfil UN PRI obligations.

Manage the enviornmental impacts associated with your investments

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Carbon Risks in UK Equity Funds Carbon Risks & Opportunities in the S&P500 Carbon Counts USA 2009 VicSuper Carbon Counts 2009 Carbon audit of Henderson Global Care UK Income fund