Designing low-carbon indices based on Carbon Impact Analytics indicators

Since 2010, Carbone 4's team of energy and climate change specialists has proven expertise in the financial sector. 

Carbon Impact Analytics – a methodology co-developed with Mirova, Natixis subsidy specialized in responsible investment – equips investors and asset managers with the tools necessary to reduce their climate-related risks but also to seize the opportunities offered by the ongoing energy transition. 

As a result of studies carried out for Euronext and Cambridge University’s Investment Leaders Group, Carbone 4 releases its conclusions on low-carbon indices through a comprehensive report. In this report, Carbone 4 offers a detailed look into how our indicators can be used to either 

1. reallocate an existing portfolio or index to achieve maximal carbon performance or 
2. build new low carbon indices from the ground up, drawn from Carbone 4’s ever-growing database of CIA-analyzed firms.  

Indeed, Carbon Impact Analytics-based indices stand out from other low carbon indices on the market for several reasons: - inclusion of indirect emissions (Scope 3) enabling to account for the transition risk : a standardized and consistent approach that allows for accurate comparison of index constituents (including those within the same sector); 

• inclusion of emissions savings : a measure of the opportunity associated with investment in an index, not only the risk; 
• customizable index building : decision criteria adapted to investor needs. ... 

To access the full report, click here.  

For an in-depth look at CIA methodology, refer to the CIA guidebook.  

To learn more about Carbone 4’s many low-carbon investment services, contact us here