Taking fund holdings at the end of 2005, Trucost calculated the direct and indirect emissions in terms of carbon dioxide equivalent (CO2e), making estimates where data was not reported. These results were then normalized using the value of the fund to produce a measure of carbon intensity, which was compared with the fund’s benchmark, the MSCI World Index.
Overall, the Industries of the Future fund is 43% less carbon intensive than the MSCI World Index. Specifically, the fund generated just 393 tonnes of carbon per million pounds of investment compared with the index which generated 693 tonnes. The most carbon exposed stock in the MSCI index had an intensity of 24,292 tCO2e/£mn compared with the most intensive stock in the fund with an intensity of 3,919 tCO2e/£mn.