Portfolio emission
CALCULATOR
ABOUT THE TOOL
The growing interest in environmental, social, and governance (ESG) issues, especially climate change, has driven the formulation of regulations to bring greater transparency and standardization to the issue. As a result, the volume of GHG emissions financed by investors has become essential information for financial market players to fulfill their fiduciary duty, decarbonize their portfolios, and ensure efficient management of the climate risk to which they are exposed.
A major challenge for the decarbonization of investment portfolios is the application of existing methodologies for calculating financed emissions. This calculation exercise requires the structuring of data and analysis which can be complex for investors who are just starting on their decarbonization journey.
The tool facilitates the calculation of emissions financed by investment portfolios by providing a standard analysis framework that covers scope 1, 2, and 3 emissions. It is made available in an editable spreadsheet file format that calculates the CO2e emissions financed by an investment portfolio, considering four possible asset classes:
- Listed companies;
- Privately held companies;
- Real Estate;
- Project Finance.
To improve the quality and quantity of the data used in the tool, the IPC entered into a partnership with DEEP, a Brazilian startup that develops technological solutions for identifying and measuring the social and environmental impacts of the activities of companies and organizations. As a result, in version 2.0 of the tool, DEEP is responsible for providing emissions data (Scope 1, 2, and 3) from the companies included in the emissions tool database.
DISCLAIMER
The data contained in the tool are estimates based on publicly available materials and information and do not constitute investment recommendations.
ABOUT INVESTORS FOR CLIMATE (IPC)
IPC – Investors for Climate is an initiative by ERM NINT, supported by the Institute for Climate and Society (iCS), through its net-zero program (Programa Economia Zero Emissões). IPC adopts a forward-thinking approach with the primary objective of engaging and equipping local professional investors to further their decarbonization efforts in their portfolios while enhancing risk-adjusted returns.
Some global initiatives have already been engaging investors in efforts to reduce the carbon footprint of their portfolios, recognizing that both asset managers and asset owners contribute to global warming through their financing of the real economy.
In response to this challenge, ERM NINT and iCS have emerged as frontrunners, actively engaging domestic investors to contribute to the goals of the Paris Agreement.
To learn more about this iniative, visit our website.
REGISTER
To download this tool
Realization
Databse and technical support
If you have any questions, comments or suggestions about the tool, please contact us at ipc@erm.com
To find out more about DEEP, visit the website deepesg.com