Trucost News / 09 Dec 2015

Trucost launches energy transition toolkit for investors

Trucost expands investor EBoard service of company and portfolio natural capital metrics to include energy transition analytics

EBoard, the first investment tool to provide comprehensive company data and portfolio analytics on carbon and broader natural resource dependencies, now offers users an energy transition toolkit to manage portfolio alignment to two degree energy transition pathways and divestment criteria.

Momentum is increasing for investors to publicly align their strategies to energy transition goals. The Portfolio Decarbonization Project (PDC) now convenes 25 investors committed to the decarbonization of $600 billion in assets under management, dramatically exceeding its stated target of $100 billion. The French Government has issued draft implementation guidelines on its new mandate requiring investors to disclose not just the carbon footprint of assets, but also their contribution to international climate targets. To keep pace, institutions will increasingly require a broader set of carbon metrics to holistically measure and manage portfolio climate risks.

“No single metric will tell investors everything they need to know about portfolio carbon risks and opportunities” said Lauren Smart, executive director and global head of financial services business, at Trucost. “Traditionally, investors have taken a backward look at their portfolio carbon footprint. Today, investors are also seeking forward-looking metrics that enable them to align their portfolios to two degree climate goals. With the launch of this new toolkit we are providing clients the ability to answer a broader set of questions about their portfolio climate exposure, align their portfolios with their climate investment beliefs and set targets based on carbon budgets and energy transition goals.”

Trucost’s energy transition toolkit provides new metrics and interactive charting tools alongside EBoard’s traditional carbon metrics, enabling investors to:

  • Measure portfolio alignment to a 2 degree target from an energy mix perspective
  • Quantify the future share of green and brown energy based on changing types of fossil fuel extraction and power generation activities
  • Set coal divestment thresholds and identify companies breaching them
  • Identify fossil fuel reserves and embedded carbon for stranded asset risk analysis
  • Assess company transition pathways by identifying the rate at which companies are increasing or decreasing their share of green and brown energy
  • Evaluate carbon pricing scenarios with the EBoard carbon calculator tool

Trucost will continue to expand the metrics and tools available to investors on EBoard in the coming months. This will include an expansion of 2 degree alignment in other key sectors beyond energy.

For more information and to try the tool, contact EBoardhelp@trucost.com

Media contact

James Richens, +44 (0)20 7160 9804, james.richens@trucost.com

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