Integration of Carbon Footprint data
Storebrand uses carbon data from data provider Trucost to calculate the carbon footprint of our holdings in both equities and bond funds. If we have carbon information covering less than 75% of the market share of the fund's equity holdings we will not report on that fund's carbon footprint. Less than 75% coverage may result in a faulty or tilted result.
As of today, there is no global standard on how to calculate Carbon Intensity, though the TCFD framework has gained significant momentum globally. Since both methods and data are continuously adjusted and refined, the Storebrand Group is following the developments and adjusting reporting guidelines accordingly. Data is not always available for individual companies, and there are still quality issues with the data and the methods of calculation. Therefore, the carbon intensity results should be seen as indicative, and they should be used together with a broader forward-looking sustainability analysis.
Method of Calculation
The Storebrand Group applies the Weighted Average Carbon Intensity as recommended by the TCFD . This formula describes a portfolio’s exposure to carbon-intensive companies, expressed in tons CO2 equivalents relative to Fund Currency M Sales Revenue. Storebrand reports on carbon dioxide equivalents, which is a measurement that includes carbon dioxide and equivalent greenhouse gases. The reporting includes Scope 1 and Scope 2 emissions as defined by the Green House Gas Protocol (www.ghgprotocol.org),), meaning company’s direct emissions from owned or controlled sources and indirect emissions from purchased energy. Storebrand acquires carbon data of individual companies from data provider Trucost. For more information please see https://www.trucost.com/publication/carbon-energy-transition-metrics/
Quarterly reports on the carbon footprint of Storebrands equity funds are available here.