1.1 Climate Impact Metrics

The climate metrics on the asset level build the foundation for our two main products: 1) averaged climate impact and risk metrics for each index and portfolio on the infraMetrics platform, and 2) valuation analytics to build sector- and market-specific benchmarks.

Based on the predicted Scope 1, 2, and 3 emissions, we developed two types of climate impact metrics to compare the level of operational emissions to assets’ financial value, providing investors and asset owners with precise insights into an asset's current carbon efficiency. Compared to the baseline data, the climate scenario predictions provide an outlook for 2030, 2040, and 2050 for each scenario. While we predict Scope 1, 2, and 3 emissions, we compute the metrics for our two main products based on the combined emissions of Scope 1 and 2.

In detail, we compute the following climate impact metrics:

Besides the three absolute carbon emission metrics for each scope and asset, infraMetrics provides two aggregated emission metrics for Scope 1 and 2 and for Scope 1, 2, and 3. However, our climate scenario data does not provide predictions of Scope 3 carbon emissions.

• Scope 1 emissions (in tCO2e) on asset level as of today and for 2030, 2040, 2050

• Scope 2 emissions (in tCO2e) on asset level as of today and for 2030, 2040, 2050

• Scope 3 emissions (in tCO2e) on asset level as of today

• Scope 1+2 emissions (in tCO2e) on asset level as of today and for 2030, 2040, 2050

• Scope 1+2+3 emissions (in tCO2e) on asset level as of today

For each of the absolute carbon emissions, we compute two financed emission metrics based on an asset’s ratio of emissions in relation to its NAV and EVIC:

• Carbon-to-NAV ratio: The ratio of emissions to NAV connects carbon emissions to an asset’s market value and explains to what extent a carbon tax would affect the asset as an equity and investment.

  • Scope 1 tCO2e / NAV in USDm as of today and for 2030, 2040, 2050

  • Scope 2 tCO2e / NAV in USDm as of today and for 2030, 2040, 2050

  • Scope 3 tCO2e / NAV in USDm as of today

  • Scope 1+2 tCO2e / NAV in USDm as of today and for 2030, 2040, 2050

  • Scope 1+2+3 tCO2e / NAV in USDm as of today

  • Average (Scope 1+2 tCO2e / NAV in USDm) as of today and for 2030, 2040, 2050 for all indices, portfolios, sectors, and markets

• Carbon-to-EVIC ratio: In comparison to the carbon-to-NAV ratio, the ratio of emissions to EVIC includes the debt an asset has taken on and, hence, provides further insights into an asset’s potential strengths and weaknesses regarding its CO2 emissions.

  • Scope 1 tCO2e / EVIC in USDm as of today and for 2030, 2040, 2050

  • Scope 2 tCO2e / EVIC in USDm as of today and for 2030, 2040, 2050

  • Scope 3 tCO2e / EVIC in USDm as of today

  • Scope 1+2 tCO2e / EVIC in USDm as of today and for 2030, 2040, 2050

  • Scope 1+2+3 tCO2e / EVIC in USDm as of today

  • Average (Scope 1+2 tCO2e / EVIC in USDm) as of today and for 2030, 2040, 2050 for all indices, portfolios, sectors, and markets