As concerns over climate change continue to grow, so do concerns over carbon asset risk. With the goal of promoting ESG transparency, S&P Dow Jones Indices offers four carbon exposure metrics for our global indices to help market participants understand, measure, and manage carbon risk.
S&P Dow Jones Indices calculates these metrics using Trucost data and analysis to determine the carbon exposure of the companies in our indices. The Trucost analysis covers 14,000 companies, representing 99% of global market capitalization.
In the absence of company disclosure, estimations are provided using Trucost’s granular, multi-sector assessment of company business activities and proprietary environmentally extended input-output model. The result is a complete environmental performance profile, encompassing company operations and supply chain tiers back to raw materials extraction.
Learn more about how these metrics are calculated.
Trucost's Research Process
Trucost sheds light on companies’ environmental performance using a four-step research process.
Trucost, part of S&P Global, is a leader in carbon and environmental data and risk analysis. Trucost assesses risks relating to climate change, natural resource constraints, and broader environmental, social, and governance factors. More details on Trucost’s methodology are available here.