Trucost Blog / 06 Jan 2016

New Year’s Resolution: Lose Weight…in Carbon

Carbon footprinting and low-carbon indices are just some of the tools investors can use to reduce risk in their portfolios.

The current response to carbon cost risks by the fund management industry is extremely varied and is a concern for institutional investors including pension funds. Without accurate measurement, investors may struggle to manage the risk effectively.

A carbon footprint analysis quantifies the greenhouse gas emissions (GHG) emitted by companies in the portfolio. The analysis also takes account of purchased electricity, business travel, and logistics. The carbon footprints of portfolios, expressed in tonnes of carbon dioxide equivalent (CO2e) provide a comparable measure of emissions associated with holdings and provide a useful indicator for related exposure to carbon costs.

Other useful metrics include an analysis of a portfolio’s exposure to stranded fossil fuel assets. If only one-third of already discovered fossil fuel deposits can be burned if we are to keep to a 2 degree limit, why are many oil & gas companies allocating large capex to discovering more? Read more…

3 February, 2020
Events Green Finance Summit – Phoenix – 3 – 4, 2020

The GreenFin Summit follows a successful launch event in 2019. That invitation-only event brought together 100 corporate sustainability leaders, major public-sector pension fund executives and leading financial institutions, with over a trillion dollars of combined assets under management. The discussion broached vital topics in ESG that will be expanded upon at the 2020 Summit. Richard Mattison...

Find out more
Trucost News / 26 Nov 2019 Trucost launches Physical Risk Analytics to help assess risks and opportunities from climate change

New dataset and analytics enables investors, companies and governments to weigh risk of companies’ assets from physical impacts of climate change

Read news
Publication / 25 Nov 2019 Understanding Climate Risk at the Asset Level: The Interplay of Transition and Physical Risks

How could the interplay between regulatory transitional risks and physical risks impact the performance of companies across sectors and geographies?

Read publication