Tag Archives: Trucost

Starting on the Right Foot: Preparing Accurate ESG Disclosures

As part of a series of articles on ESG disclosure, Trucost describes the importance of accurate ESG disclosure for reporters and readers. By the time this blog is up, some seasoned ESG reporters in Southeast Asia will have published their sustainability reports; another group will be finalizing their reports; while the rest will still be Read more […]

Water Risk: Looking Back and Looking Ahead

Water scarcity risk has been in the spotlight recently with Cape Town’s efforts to avert “Day Zero” and the risk of taps running dry. Although this risk appears to be receding through radical conservation measures, including wholesale elimination of abstraction rights in some cases, it underlines the common global challenge of increasing fresh water scarcity. Read more […]

Carbon-Efficient Portfolio Construction Part 2: Sector-Relative Improves Efficiency

In a prior blog, we demonstrated that unconstrained carbon-efficient portfolios have significant unintended (and unfavorable) sector and risk factor tilts that can drag down performance. In this follow-up blog, we explore potential ways sector-relative, carbon-efficient portfolios can address the drawbacks of sector-unconstrained, carbon-efficient portfolios. To form sector-relative, carbon-efficient quintile portfolios, we ranked and grouped securities Read more […]

Carbon-Efficient Portfolio Construction Part 1: Unconstrained Versus Sector Relative

As more institutions start to adopt low-carbon investing into their investment processes, it’s important to understand portfolio implications of incorporating carbon risk. We recently published a research paper in which we demonstrated how carbon efficiency can be integrated into factor portfolios. In a series of blog posts, we will be discussing our findings. We evaluated Read more […]

Carbon Risk Integration: Interaction Between Carbon Risk and Traditional Risk Factors

The discussions on the merits of carbon awareness investing are evolving, and in a previous blog, we discussed how investors are interested in progressing from the current data-driven carbon emission framework to a risk-analysis-driven, two-degree pathway paradigm. The shift has been largely spurred by the Financial Stability Board (FSB) and recommendations from its Task Force Read more […]

ESG and Supply Chain: Why Both Matter

There has been a rapid shift in the world of corporate disclosure. In the past 12 months, we have seen investment giants writing to CEOs urging them to report on their long-term strategies and socio-environmental goals and the world’s first gender pay gap reporting regulation coming into effect. Companies are responding to the growing need Read more […]

Mind the Gap: Corporate Carbon Disclosure in EMEA

Many companies in the Europe, Middle East, and Africa (EMEA) region appear not to be fully disclosing their carbon emissions—especially from their supply chain and use of products. For many sectors, this is often where most risks lie. Nevertheless, across EMEA there are encouraging signs that companies are investigating these gaps and taking action to Read more […]

Can “Being Green” Deliver Enhanced Returns?

We often hear of the need to address risks resulting from environmental issues in financial markets. Research by The Economist Intelligence Unit, “The Cost of Inaction,” estimates the value at risk from climate change impacts as ranging from USD 4.2 trillion to USD 43 trillion between now and the end of the century. Over time, Read more […]

Carbon Emissions History of the S&P 500® and its Sectors

Every year, Trucost and GreenBiz Group release their annual State of Green Business report, which gives an overview on the state of the sustainability movement and reviews 30 key indicators assessing corporate sustainability performance. As noted by Richard Mattison, CEO of Trucost, in a blog from earlier this month, the carbon emissions of the largest Read more […]

Is the Needle Moving on Sustainable Business?

2018 is set to be a major year for sustainable business. The new year is a time to take stock of where we are going—and we are grateful for the opportunity to dig deep into our data to answer the question: “Is the needle moving on sustainable business?” Each year in the State of Green Read more […]