Climate Change
Admin
Welcome !
Logout
Navigation
Dashboards
Manage Blog
List
Add
Manage Team
List
Add
Manage Email
Theme Setting
Climate Change
Blog
Edit
Edit Blog
Name
Slug
Images
Tags
Author Name
Short Description
Image Alt Name
Date
Meta Title
Meta Keywords
Meta Description
Enter Source
<h2>Visualized: An Investor’s Carbon Footprint, by Sector</h2> <p>In the quest for a sustainable future, investors can play a crucial role in shaping our planet’s destiny.</p> <p>Understanding the carbon emissions in different sectors is a key way to make environmentally and financially conscious decisions and help make a positive impact on the planet.</p> <p>This infographic, sponsored by <a href="https://info.msci.com/l/36252/2023-08-14/xzsjy1">MSCI</a>, looks at carbon emissions by sector.</p> <h2>Types of Carbon Emissions</h2> <p>Unsurprisingly, industries heavily reliant on fossil fuels and energy-intensive processes, like energy, materials, and industrials, have significant <a href="https://decarbonization.visualcapitalist.com/decarbonization-101-what-carbon-emissions-are-part-of-your-footprint/">carbon footprints</a>. In contrast, service-based and technology industries are traditionally less carbon-intensive.</p> <p>To get an accurate picture of a sector/industry’s carbon footprint, it’s important to look up and down their value chain. Here is how policymakers categorize carbon emissions:</p> <ol> <li><strong>Scope 1:</strong> Generated directly by the organization and within its control e.g., on-site fuel combustion and internal industrial processes.</li> <li><strong>Scope 2:</strong> Indirect emissions from energy use, such as purchased electricity, heat, or cooling.</li> <li><strong>Scope 3:</strong> Indirect emissions, but different from Scope 2 emissions. These are emissions that the company does not directly control such as the emissions produced from a supplier or emissions generated from the use of its sold product.</li> </ol> <p>Only looking at all three scopes of emissions can we arrive at a complete picture of a sector’s carbon footprint.</p> <h2>Volume of Carbon Emissions, by Sector</h2> <p>The following table breaks down the greenhouse gas emissions for each sector by scope. A sector’s carbon footprint is expressed in metric tons of CO2 equivalent for every $1 million in financing.</p> <p>In other words, here’s how much of a climate impact a one million dollar investment has in each of the following sectors.</p> <p>The total figure represents the weighted average carbon emissions of each sector’s constituents as of August 10, 2023:</p> <table cellspacing="0" style="border-collapse:collapse; width:375px"> <tbody> <tr> <td style="border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; border-top:1px solid black; height:20px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><strong><span style="color:black"><span style="font-family:Calibri,sans-serif">Sector</span></span></strong></span></td> <td style="border-bottom:1px solid black; border-left:none; border-right:1px solid black; border-top:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><strong><span style="color:black"><span style="font-family:Calibri,sans-serif">Scope 1</span></span></strong></span></td> <td style="border-bottom:1px solid black; border-left:none; border-right:1px solid black; border-top:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><strong><span style="color:black"><span style="font-family:Calibri,sans-serif">Scope 2</span></span></strong></span></td> <td style="border-bottom:1px solid black; border-left:none; border-right:1px solid black; border-top:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><strong><span style="color:black"><span style="font-family:Calibri,sans-serif">Scope 3</span></span></strong></span></td> <td style="border-bottom:1px solid black; border-left:none; border-right:1px solid black; border-top:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><strong><span style="color:black"><span style="font-family:Calibri,sans-serif">Total</span></span></strong></span></td> </tr> <tr> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; height:20px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">Energy</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">263.3</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">27.2</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">2827.5</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">3118</span></span></span></td> </tr> <tr> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; height:20px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">Materials</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">298.4</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">82.8</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">1349.2</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">1730.4</span></span></span></td> </tr> <tr> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; height:20px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">Utilities</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">461.4</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">16</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">405.5</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">883</span></span></span></td> </tr> <tr> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; height:20px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">Industrials</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">32.6</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">8.3</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">425.1</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">466</span></span></span></td> </tr> <tr> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; height:40px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">Consumer discretionary</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">5</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">9</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">372.2</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">386.2</span></span></span></td> </tr> <tr> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; height:20px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">Consumer staples</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">16.5</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">12.4</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">276.4</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">305.3</span></span></span></td> </tr> <tr> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; height:40px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">Information technology</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">2</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">5.8</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">79.3</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">87.1</span></span></span></td> </tr> <tr> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; height:20px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">Health care</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">1.8</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">2.4</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">70.9</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">75.1</span></span></span></td> </tr> <tr> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; height:20px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">Financials</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">4</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">1.1</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">58.3</span></span></span></td> <td style="background-color:var(--even-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--even-text-color)"><span style="font-family:Calibri,sans-serif">63.4</span></span></span></td> </tr> <tr> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; height:20px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">Real estate</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">1.4</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">5.9</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">46.8</span></span></span></td> <td style="background-color:var(--odd-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--odd-text-color)"><span style="font-family:Calibri,sans-serif">54</span></span></span></td> </tr> <tr> <td style="background-color:var(--hover-bg-color); border-bottom:1px solid black; border-left:1px solid black; border-right:1px solid black; height:41px; text-align:center; vertical-align:bottom; white-space:normal; width:118px"><span style="font-size:15px"><span style="color:var(--hover-text-color)"><span style="font-family:Calibri,sans-serif">Communication services</span></span></span></td> <td style="background-color:var(--hover-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--hover-text-color)"><span style="font-family:Calibri,sans-serif">0.6</span></span></span></td> <td style="background-color:var(--hover-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--hover-text-color)"><span style="font-family:Calibri,sans-serif">4.7</span></span></span></td> <td style="background-color:var(--hover-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--hover-text-color)"><span style="font-family:Calibri,sans-serif">40.5</span></span></span></td> <td style="background-color:var(--hover-bg-color); border-bottom:1px solid black; border-left:none; border-right:1px solid black; text-align:center; vertical-align:bottom; white-space:normal; width:64px"><span style="font-size:15px"><span style="color:var(--hover-text-color)"><span style="font-family:Calibri,sans-serif">45.8</span></span></span></td> </tr> </tbody> </table> <p>Represented by tCO₂e/USD million EVIC. EVIC is the enterprise value including cash.</p> <p>Understanding carbon footprint profiles can help investors evaluate the risks faced by carbon-intensive industries, such as future regulations and reputational challenges.</p> <p>MSCI’s climate metrics empower investors to make responsible investments and drive meaningful change.</p>
Submit
Theme Settings
Choose Layout
Vertical
Color Scheme
Light
Dark
Layout Mode
Fluid
Boxed
Detached
Topbar Color
Light
Dark
Sidebar Color
Light
Dark
Brand
Sidebar Size
Default
Compact
Condensed
Hover View
Full Layout
Layout Position
Fixed
Scrollable
Sidebar User Info
