The Emmi GCER uses science to translate carbon risk for investors.
The Emmi GCER aggregates corporate carbon emissions and financial data to derive carbon-adjusted financial metrics for companies.
These carbon-adjusted financials are benchmarked against the global benchmarks based on the latest climate science scenarios that allow a rating to be calculated ranging from 0-100. The higher the GCER the lower carbon exposure.
The Emmi GCER aggregates corporate carbon emissions and financial data to derive carbon-adjusted financial metrics for companies.
These carbon-adjusted financials are benchmarked against the global benchmarks based on the latest climate science scenarios that allow a score to be calculated ranging from 0-100. The higher the Emmi Score the lower carbon exposure.
What makes up the GCER?
12 Financial Metrics Assessed
Emmi is the first carbon risk tool that allows complete financial assessment for any company across 12 financial metrics. The algorithm translates the whole carbon transition risk problem into an understandable financial risk and reward equation around three broad financial areas.
Carbon Value
How reliant is the long term value creation of the company to carbon emissions? Making up 57% of the rating, Carbon Value is assessed via 7 metrics including Current Revenue to Carbon, Book Value to Carbon, Market Cap to Carbon, EBITDA Carbon Valuation, P/E Carbon Valuation, Trend of Revenue to Carbon and Dividends to Carbon.
Carbon Leverage
How sensitive is the company's debt position to carbon emissions? Making up 33% of the GCER, Carbon Leverage is assessed by 3 metrics including Debt to Carbon adjusted EBITDA, Net Assets to Carbon and Carbon adjusted interest coverage.
Carbon Liquidity
How well can a company's short term assets absorb a carbon price based on recognised benchmarks? Making up 10% of the GCER, Carbon Liquidity is assessed by 2 metrics including Carbon adjusted Cash to Liabilities and Carbon adjusted Operating Cash.