A Framework for Attributing Changes in Portfolio Carbon Footprint
Tracking a portfolio’s carbon footprint over time is challenging since it may be driven by changes in climate-related variables, portfolio rebalancing or financial variables. Our paper presents a framework that allows investors to understand to what extent changes in a portfolio’s carbon footprint are due to companies’ real-world decarbonization efforts, a portfolio manager’s investment decisions or changes in companies’ financing.
Carbon footprint factors
Our interactive tool enables you to explore different portfolios and gain insights into the primary factors influencing their carbon footprints.
By selecting the different portfolios, you will be able to visualize the attributions of changes in portfolio-level emissions. Our framework disentangles these changes by categorizing them into three primary drivers: changes in portfolio composition, changes in issuers' emissions, and changes in ownership and financing structure.
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A Framework for Attributing Changes in Portfolio Carbon Footprint
Tracking a portfolio’s carbon footprint is a key requirement for setting and tracking net-zero targets.
Climate solutions
Learn how MSCI's climate solutions can help investors and issuers utilize climate data and tools to support their investment decision making.
Nature and Biodiversity
Our holistic solutions empower investors to analyze and report on their portfolios’ exposures to transition and physical climate risk.