The challenge of measuring carbon emissions
A common starting point has been to measure the “carbon footprint” of a portfolio; though these are often backward looking and may not take into account the future plans of a business to improve their carbon efficiency. These metrics are best used as a measure of progress over time towards any stated decarbonisation goals an investor may have.
A potentially more helpful approach would be to measure the portfolio’s investments for future developments in relation to carbon emissions. For the full article, click here