Carbon Alpha

Identify global carbon risk exposure for any company or portfolio.

This CMS design tool helps you get the most from the HubSpot COS.

$43 Trillion

Value at risk of climate change to manageable assets

28%

Number of listed companies compatible with net-zero

40k+

Emmi universe coverage of securities 

Unlimited

Portfolio-level coverage

Introducing the

Global Carbon Efficiency

Rating

(GCER)

 

The GCER is a unique measurement that defines how resilient any company or portfolio is to a carbon-constrained world, and what needs to occur for it to achieve net-zero in a specified timeframe.

Global

Carbon

Efficiency

Rating

(GCER)

 

The GCER is a unique measurement that defines how resilient any company or portfolio is to a carbon-constrained world, and what needs to occur for it to achieve net-zero in a specified timeframe.

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.

Screen Shot 2021-11-30 at 2.39.23 pm

How does the GCER work?

Climate Science Carbon Benchmarks

We translate complex global climate scenarios into three distinct and easy to understand carbon benchmarks for finance: 1.5C warming, 2C warming and 3-4C warming. 

Company Carbon Emissions Data

We source carbon emissions data from multiple sources. If old or data not available, we use proprietary models to estimate emissions.

Company Financial Data

We source complete financial performance from over 40,000 global companies.

Carbon Exposures Across 12 metrics

Twelve seperate carbon adjusted financial metrics are calculated, benchmarked against the universal carbon standards.

The Emmi Rating

All metrics combine into a final algorithm to provide the global carbon efficiency ratings for any company out of 100. This gets aggregated up to the portfolio level using weighted averages.

Net Zero Compatible

Using future carbon benchmarks, we measure a companies compatibility to a net-zero emissions economy.

What do the ratings mean?

0/100

High Carbon Exposure

  • This means a company is aligned with a high carbon future economy
  • Equivalent to future climate warming of 3-4°C warming
50/100

Medium Carbon Exposure

  • This means a company is aligned with a medium carbon future economy
  • Equivalent to a limiting future warming to 2°C
100/100

Low Carbon Exposure

  •  This means a company is aligned with a low carbon future economy
  • Equivalent to a limiting future warming to 1.5°C future warming
 

What makes up the GCER?

12

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.

CarbonValue

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.

CarbonLeverage

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.

CarbonLiquidity

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.

Want to know more about the methodology?

Get a simple PDF to review later. By submitting your information, you agree for us to communicate with you. Unsubscribe at anytime.