Tool for estimating
C02e emissions
What is it?
The tool developed by the IPC generates emission factors that make it possible to estimate the absolute emissions (tCO2eq) of scopes 1 and 2 of Brazilian companies. The estimate is based on public information from more than 300 publicly traded Brazilian companies, made available by the companies and other databases.
Who is it for?
The tool can be used free of charge by anyone interested in estimating emissions. Its main target audience is professional investors (asset owners and asset managers) interested in calculating the carbon footprint of their portfolio and investments.
WHY?
The growing interest in environmental, social and governance (ESG) issues, especially climate change, has led to the formulation of regulations around the world with the aim of bringing greater transparency and standardization to the issue. As a result, the volume of GHG emissions by companies has become essential information for financial market players to fulfill their fiduciary duty, decarbonize their portfolios and ensure efficient management of the climate risks to which they are exposed.
A major challenge for the decarbonization of investment portfolios is the lack of information on the Greenhouse Gas (GHG) emissions of investee companies, which often do not have or do not disclose this data. The tool facilitates the calculation of the carbon footprint of investment portfolios, making it possible to estimate the scope 1 and 2 GHG emissions of investee companies that do not disclose their emissions, based on their sector of operation.
HOW IT WORKS?
The tool uses the GHG emission factors (in tCO2e/BRL) of more than 300 publicly traded Brazilian companies as a proxy to estimate the potential emissions of a company that does not measure or disclose this data. In this version of the tool, scope 1 and 2 emissions were considered. The data is delimited by economic activity and the company's gross revenue.
Inputs were taken into account for the proxy:
- Sector classifications, available on the B3 and GICS websites;
- Public data on more than 300 listed companies, available on their investor relations websites;
- Data provided by the Registro Público de Emissões.
DISCLAIMER
The data contained in the tool are estimates based on publicly available materials and information and do not constitute investment recommendations.
SOBRE OS INVESTIDORES PELO CLIMA (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 initiative, visit our website.
REGISTER
To download the tool!
If you have any questions, comments or suggestions about the tool, please contact us at ipc@erm.com