Glossary
Climate and transition
What is portfolio emissions?
The carbon footprint of what you own, not what you occupy.
Financed emissions dwarf operational ones for any investor. Halving them by selling the worst assets to a less scrupulous buyer makes your report look better and does nothing for the atmosphere.
A worked example
Own 10% of a company that emits 2m tonnes of CO2e a year and, under the usual attribution method, 200,000 tonnes count as your financed emissions. Your office might emit 500.
Where it catches you in the game
- The carbon stat tracks the book; climate challenges set a hard ceiling on it.
It comes up most on the asset management desk.
Related terms
Learn it by using it
Definitions stick once they've cost you money. Take a seat, make three calls a year and watch what portfolio emissions does to your returns.