'Specific metrics can now assess the carbon footprint of individual companies and the risks for portfolios that invest in them,' says Anna
Snider, head of Due Diligence in the Chief Investment Office for Merrill and Bank of America Private Bank. 'One widely used metric, carbon intensity, uses direct and indirect GHG emissions data and corporate revenue to objectively compare companies of different sizes.' While such metrics look at past data, an important and evolving area assesses future risks. 'Many data providers now incorporate a company's stated commitments, renewable energy investments, plans for transitioning away from fossil fuels and other data into their assessments,' she
adds.