To this end, Henderson published the first carbon audit of an investment portfolio in June 2005, commissioning Trucost to compare the emissions associated with the Global Care Income fund with its benchmark, the FTSE All Share. The results showed that the fund was 32% less carbon intensive than the overall market, testimony to the environmental criteria that guide its investments.
Henderson then wished to repeat the exercise in 2006 to understand how the fund’s performance had evolved. Trucost calculated the carbon emissions (CO2e) associated with the fund’s holdings and the wider index on 31 December 2005, making estimates where data was not reported. These results were then normalized using the value of the fund and the index to produce a measure of carbon intensity. In absolute terms, the carbon associated with the stocks in the fund fell by 1%. The fund’s relative carbon intensity – emissions per million pounds of investment – fell faster, declining by 7% to 554 t CO2e/£ million.