Publication / 15 Oct 2015

How to Account for Greenhouse Gas Emissions of Derivatives

A white paper by Threshold Group & Trucost.

Threshold Group, a registered investment advisor, and Trucost have formed a strategic partnership to advance carbon audits of investment portfolios.

In order to contribute to the development of greenhouse gas (GHG) accounting for investments, Trucost and Threshold Group have developed, to the best of our knowledge, a first-of-its-kind methodology to assess the carbon risk exposures of underlying assets in derivative investments. The approach can be applied to derivatives of listed equities, corporate bonds and indexes that consist of listed equities or corporate bonds.

Trucost and Threshold Group recommend that investors consider using this methodology to measure the GHG exposure of derivative investments to supplement GHG emission inventories for their investments in public equity and corporate debt. It is our hope that this recommended methodology helps support future development of GHG accounting standards by the World Resource Institute and World Business Council for Sustainable Development.

24 October, 2019
Events Hong Kong Thought Leadership Seminar Eyes On Asia – Restocking The Investment Toolkit

As investment strategies continue to evolve, investors have a more sophisticated set of tools available to help navigate different economic cycles and market conditions – ranging from factor-based investing and ESG to multi-asset solutions. Join S&P DJI and leading financial professionals to keep pace with the latest investment strategies that can help investors stay...

Find out more
1 October, 2019
Events Cooler Earth Sustainability Summit – Kuala Lumpur – 1st & 2nd Oct

Join global experts and local champions to not just dialogue, but motivate collective and collaborative action, mobilise resources, finance, and the political will to counter environmental degradation, social inequity, and economic depression.

Find out more
19 September, 2019

VIEW ALL NEWS & INSIGHTS