Macro Minutes: The Challenges of Measuring Carbon Emissions

Key Points

  • It is becoming increasingly common to see companies make a commitment to reduce their carbon emissions.
  • For institutional investors interested in managing their portfolio’s carbon footprint, having a solid understanding of how carbon emissions are calculated is key.
  • While there are various challenges institutional investors may face when quantifying carbon emissions, a more holistic approach to carbon management is worth considering.
Investing in financial markets involves a risk of loss and there is no guarantee that all or any invested capital will be repaid. Past performance neither guarantees nor reliably indicates future performance. The value of investments and the income from them will fluctuate with world financial markets and international currency exchange rates.