MSCI in practice: Managing your portfolio's carbon footprint and understanding the impact of changing market conditions

Measuring and understanding portfolio’s carbon footprint and its changes over time is the foundation of regulatory reporting, stakeholder communication, climate-related risk assessment, and climate strategies and actions.  

Changes in portfolio carbon footprints may be driven by changes in climate-related variables, portfolio rebalancing or financial variables. 

During this event, we will discuss a carbon footprint attribution framework that attributes changes in portfolio-level emissions to their primary drivers, including changes in the portfolio composition, changes in issuers’ emissions and changes in the ownership and financing structure. The framework is designed to allow investors to understand to what extent changes in a portfolio’s carbon footprint are due to companies’ organic decarbonization efforts, a portfolio manager’s investment decisions, or changes in companies’ financing.  

We will provide the investor perspective on the necessity and importance of carbon footprint attribution.