INrate and Adelphi Consult analyze climate effects of investments

With sustainable investment products investors can reduce the carbon intensity of their equity portfolio by up to 35%

On behalf of the German Ministry for the Environment, Adelphi Consult, together with INrate, the Swiss sustainability rating agency, has analyzed the climate effects of conventional and sustainable investments. The present interim report shows that investors can reduce the carbon intensity by up to 35% if they rebalance their equity portfolio accordingly. The results of the study are based on the envIMPACT® methodology of INrate and Centre Info.

The envIMPACT methodology measures the carbon intensity of companies along the entire value chain of their products. It includes the direct greenhouse gas (GHG) emissions during the production phase as well as the indirect emissions from the supply chain and from the use of the products. The aim of the study is to compare the carbon intensity of various investment products. To this end, it calculates the carbon intensity of an average German savings account as well as of an average equity portfolio and compares them to a climate-friendly savings account and a sustainable/climate-friendly equity portfolio respectively.

Depending on the investment product, GHG savings of 35 to 68% are possible

For the analysis, the five conventional and climate/sustainable investment funds with the greatest volume listed in Germany were examined. With this sample, climate and environmental technology funds showed a greenhouse gas reduction potential of 35% compared to conventional equity funds. Comparing conventional and climate-friendly savings products, the result is even more obvious: on average, the investor is responsible for 68% less greenhouse gas emissions than when investing in conventional saving products.

With the average investment mix, a GHG reduction of 42% is possible

Taking into account the average asset distribution of a German investor among the different product classes, the mix of climate-friendly and sustainable investment products throughout the product classes analyzed in the report is clearly less carbon-intense: 10,000 euro invested cause only 2.7 metric tons of GHG emissions here compared to 4.5 metric tons in the average conventional investment mix.

Further information

envIMPACT®

For investors, being exposed to climate risks – especially rising CO2 prices and energy costs – is of increasing importance. To this end, the envIMPACT methodology was launched in 2005. It makes it possible to modelize the GHG emissions of companies over the entire value chain of their products and services. With the help of envIMPACT, investors can calculate the carbon footprint of their investment, build a low-carbon portfolio or reduce the carbon intensity of an existing portfolio.

Report on climate effects of capital investments

The present interim report came into being within the framework of the “Aktionswoche Klima und Finanzen” (awareness week climate and finances) organized by the German Federal Ministry for the Environment together with numerous financial services companies in Germany. Download the report (in german only)

Contact

Centre Info SA Fribourg: Stefano Gilardi, T +41 26 322 06 14, stefano.gilardi@centreinfo.ch

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