As part of ongoing work to simplify the Emmi app, we have removed a calcualtion option around financed emissions, and opted for the EVIC approach as our default.

Prior to recent changes in the app, we had two approaches to apportion a company's emissions: either the Market Cap or EVIC methods. Market Cap apportions all emissions of a company to the equity holders, whereas EVIC apportions emissions across debt and equity holders. There is not strong consensus as to which method is correct, so we had a toggle to provide customers this choice, with Market Cap being the default.

We want to take a more opinionated approach when dealing with self-serve products, to provide an easier to understand experience. As such, we removed the toggle in the recent updates to the web app. We are now updating the default calculations to use EVIC over Market Cap, as a large majority of our customers are also invested in debt products, which would mean Market Cap apportionment does not serve them well.

Changing to the EVIC method will result in a reduction of financed emissions in general for a given company across an equity holding (as some of the emissions will now be apportioned to debt). As a result equity portfolio footprints (or total financed emissions) will go down. However the temperature alignment, emission reductions and potential carbon liability numbers will remain unchanged.

Please reach out if you have any questions.