CALCULATING YOUR CARBON FOOTPRINT
BREAKDOWN OF CO2E EMISSIONS FOR TWO BUSINESS SECTORS: EXAMPLES (in % of emissions per company)
The GHG Protocol* establishes greenhouse gas emission reporting standards for companies. Emissions are broken down into three categories, with varying proportions depending on the company’s line of business.
SCOPE 1 Direct emissions from the company’s facilities.
SCOPE 2 Indirect emissions linked to the company’s energy consumption.
SCOPE 3 Other indirect emissions, including those related to the use of its products.
To calculate a fund’s carbon footprint, companies’ CO2e emissions are added up and weighted by market capitalisation and the companies’ weight in the portfolios. The resulting indicator measures emissions generated for each euro invested in the fund.
Today, the measurement of Scope 3 emissions and avoided emissions* is not standardised or considered sufficiently reliable to be used in reporting. As a result, the calculation of a company’s carbon footprint currently focuses on Scope 1 and Scope 2 emissions. This method, however, will increase in efficiency as the data and indicators improve, with the aim of achieving greater relevance.
WHERE DO CARBON EMISSIONS COME FROM?
BREAKDOWN OF GREENHOUSE GAS EMISSIONS WORLDWIDE*
On a global scale, greenhouse gas emissions result from certain human activities, with fossil fuel consumption at the top of the list. Companies’ involvement in these activities determines their carbon footprint.
* Source: World Resource Institute
BNP PARIBAS INVESTMENT PARTNERS’ CARBON STRATEGY
This commitment is a new step in ’ sustainable and responsible investment (SRI) approach, which is already incorporating non-financial information into its company analyses and valuations. To build awareness of the general need to reduce our economy’ carbon footprint, is focusing its efforts on the following three areas:
- the publication of our funds’ carbon footprint,
- a commitment to issuers and data providers in order to improve the quality, relevance and availability of
- the implementation of tools for analysing and overseeing carbon performance
With these measures, is aiming to increase transparency and heighten its partners’ awareness of their investments’ carbon performance. This commitment supports and fosters the gradual improvement of research, analytical methods and relevant indicators in a fast-changing topic.
MONTRÉAL CARBON PLEDGE
In May 2015. was the first international asset manager to sign the Montréal Pledge. Launched under the United Nations’ leadership, this initiative encourages investors to give greater consideration to carbon risk. Since signing the pledge, has been working to measure and publish its portfolios’ carbon footprint and gradually incorporate this risk into its investment decisions. offers its institutional clients customised carbon-reduction solutions and encourages companies to publish and reduce their carbon footprint.