The report found that the S&P/TSX is the third largest market in terms of carbon footprint, measured in carbon dioxide equivalent (CO2e) per USD1 million sales. Canada is only preceded by India and Emerging Markets, and is followed by Australia. As expected, these findings are consistent with resource-based economies.
The average carbon exposure of the 181 Canadian pooled funds studied in this report is less than that of the benchmark. This result is largely due to the sector allocation decision of managers to underweight the heavily emitting utilities, energy and materials sectors. Except for the materials sector, security selection within these sectors also helped reduce the footprint of Canadian pooled funds.