The issue is discussed in ‘Corporate carbon emissions data for equity and bond portfolios’, an academic paper by Robeco’s data scientist Thijs Markwat and quant researcher Laurens Swinkels. They compare corporate carbon emissions data from four data providers for investment universes in developed and emerging equity markets, as well as investment grade and high yield credit markets.
Scopes 1,2 and 3
They look at how data for scope 1 emissions, which are generated directly by the company, and Scope 2 emissions, which are created by the energy used, is relatively straightforward. However, the data for Scope 3 emissions generated across the product’s life is much harder to get and then more complex to analyze; indeed, much of it needs to be estimated using an uncertain set of parameters.
Regarding asset classes, emissions data coverage is higher and more consistent across providers for equity markets, but less so for corporate bonds. The paper offers solutions to increase coverage and consistency, and ends on a high note by explaining that the data has become more reliable and uniform over time, with an increasing number of companies reporting their carbon emissions.
Stay informed on Sustainable investing
Receive our Robeco newsletter and be the first one to get the latest insights or build the greenest portfolio.
Important information
The contents of this document have not been reviewed by the Securities and Futures Commission ("SFC") in Hong Kong. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. This document has been distributed by Robeco Hong Kong Limited (‘Robeco’). Robeco is regulated by the SFC in Hong Kong. This document has been prepared on a confidential basis solely for the recipient and is for information purposes only. Any reproduction or distribution of this documentation, in whole or in part, or the disclosure of its contents, without the prior written consent of Robeco, is prohibited. By accepting this documentation, the recipient agrees to the foregoing This document is intended to provide the reader with information on Robeco’s specific capabilities, but does not constitute a recommendation to buy or sell certain securities or investment products. Investment decisions should only be based on the relevant prospectus and on thorough financial, fiscal and legal advice. Please refer to the relevant offering documents for details including the risk factors before making any investment decisions. The contents of this document are based upon sources of information believed to be reliable. This document is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Investment Involves risks. Historical returns are provided for illustrative purposes only and do not necessarily reflect Robeco’s expectations for the future. The value of your investments may fluctuate. Past performance is no indication of current or future performance.