Since 2014, we have seen new legislation encouraging capital flows away from fossil fuels; carbon reporting commitments; emission reduction pledges; and transition guidelines such as those for establishing the Green Financial System in China. Investors now have more reason than ever to assess the carbon embedded within their portfolios.
Portfolio footprinting is a well-established tool that identifies carbon exposure. It’s now possible to supplement traditional carbon footprint information with metrics that provide more insight on the risks of climate change and the positive contribution of certain investments as we transition to a low carbon economy. Trucost’s robust and comprehensive set of carbon metrics help investors uncover risks and opportunities across asset classes. Whether your question relates to exposure to stranded assets, investment share of greener products and renewable energy, reporting for Article 173, contribution to UN Sustainable Development Goals, or alignment with internationally agreed carbon reduction targets, Trucost’s carbon metrics will deliver the insights that can inform your management strategy.