Carbon Diagnostics now available in FactSet Workstation! Learn the details.
Major annual public markets data update
In line with our regularly scheduled annual data update, Emmi has updated emissions and transition risk metrics for public equities and public fixed income universe data. This comes with improved emissions estimates, mixed emission scopes, and a new scope 3 methodology for high intensity sectors. Overall universe coverage has improved.
What are the high level changes?
New machine learning models have been developed, improving overall error rates and emissions calculation accuracy across the board.
Mixed emissions scopes are now present in the data set. Emmi will use reported emissions where available, and fill missing emissions scopes with calculated estimates where unavailable, creating a more comprehensive data set.
Scope 3 emissions for the universe are significantly higher due to a new methodology for substituting systematic scope 3 under reported emissions in material sectors. We replace Machine Learning and low reported data within these industries with an industry intensity based on hand-picked high quality emissions reporting.
We have seen an improved universe coverage, with only 0.03% of output data points requiring quality control interventions.
New Machine Learning Model performance statistics
Scope | Data Type | Model Usage | MDAPE Noisy | R2 Valid |
Summary | Pre-requisite data for the model. | % of the 2023 universe that uses this model (n=49,506) | Implies a random 30% noise added to the input dataset. | R-squared measures the strength of the linear relationship between our predictions and the reported emissions. |
Scope1 | Reported | 14.84% | N/A | N/A |
Scope1 | Historical Emissions | 2.54% | 19.039 | 0.968 |
Scope1 | Financials Only | 81.91% | 55.051 | 0.73 |
Scope2 | Reported | 14.94% | N/A | N/A |
Scope2 | Historical Emissions | 2.55% | 22.163 | 0.964 |
Scope2 | Financials Only | 82.33% | 46.489 | 0.853 |
Scope3 | Reported | 7.74% | N/A | N/A |
Scope3 | Historical Emissions | 1.65% | 24.169 | 0.895 |
Scope3 | Material Industry Intensity Factors | 16.86% | N/A | N/A |
Scope3 | Financials Only | 73.57% | 57.212 | 0.556 |
Coverage achieved
Public Equity 2023
Our total universe size has grown from 48,410 -> 49,506
Scope 1 coverage 90.64% -> 99.12%
Scope 2 coverage 83.92% -> 99.23%
Scope 3 coverage 94.81% -> 99.64%
Corporate Bonds
Our total universe size has grown from 482,135 -> 596,110
Scope 1 coverage 60.16% -> 61.06%
Scope 2 coverage 55.08% -> 58.05%
Scope 3 coverage 60.35% -> 61.06%
Government Bonds
Our total universe size has grown from 213k -> 255k
Scope 1 coverage 77.22% -> 78.32%