Post on 21-Sep-2020
18.12.2019 Front
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Portfoliosustainability
analysis
Matter
18.12.2019 Radar_Chart
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• The plot to the left compares each of the sustainability parameters to
the average of that of the benchmark portfolio(s). • The scores range from 0 to 2.5 for all topics. Each successive ring is an
increment of 0.5. • Score = 1: The portfolio performs on par with the average of the benchmark
indices.• Score = 2.5: The portfolio performs at least two-and-a-half times as well as the
average of the benchmark indices.• Score < 1: The portfolio performs 1/score worse than the average of the
benchmark indices. E.g. if the score is 0.25: The portfolio performs four times
worse than the average of the benchmark indices.
Overall comparison between portfolio(s) and benchmark average
Controversial companies
Beneficial companies
Carbon scope 1+2 emissions
Fossil fuel reserves emissionsWaste generation
Water use
Renewable power generation
1 2.5 D_EQ D_CORP
Matter
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0
18.12.2019 Matter
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Matter is a Danish fintech startup founded in 2017. We specialise in sustainable investments and have launched a sustainable pension product in Denmark in collaborationwith Skandia in October 2018. Our team consists of people with diverse experience from the United Nations, asset management, management consulting and software development.
Drawing upon wisdom-of-the-crowd inspired sustainability information and machine learning, we have developed automated tools to screen entire investment portfolios of listed assets on a range of sustainability criteria that can be utilized by pioneering investors wishing to create sustainable and impact-oriented portfolios. The portfolio sustainability tools enable the qualification of ESG strategies with concrete allocation targets – with respect to exclusion of controversial companies, reduction of the portfolio’s CO2 impact, inclusion of additional beneficial investments and more.Sustainability metrics constitute a new dimension to traditional financial reporting that is here to stay.
Who we are Portfolio Sustainability Analytics
Matter
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18.12.2019 Benchmarking
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MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
D_EQ
D_CORP
Selected portfolios Selected Benchmarks
This analysis looks into the sustainability profile of the selected portflio(s) and compares the results to the selected benchmark(s). Both selected portfolio(s) and benchmark(s) are shown to the left.
Throughout the report, the portfolio(s) is compared to the selected benchmark(s) for all metrics. Note that the presentation contains comparisons only, and the numbers should thus not be interpreted as general sustainability ratings.
Benchmarking
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18.12.2019 Metrics-1
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Included metrics (1/2)
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Matter
18.12.2019 Metrics-2-wo-sources
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Carbon emissions (Scope 1+2)
Total reserves CO2 emissions (Oil, coal and gas)
Water use (Direct and purchased)
Waste generation (Landfill and incineration)
Renewable power generation (Wind, solar, hydro, geothermal and wave/tidal)
Impact metrics Controversial corp. topics Beneficial corp. topics Controversial sov. topics
The topics are based on more than 50 well renowned sources
Adult entertainmentAlcohol
Business ethics violationsCorrectional facilities
CorruptionDefense & weapons
Environmental damage & disastersEthical norms violationsExtreme executive pay
Fossil fuelsGambling
GMOHigh GHG emissions
Human & labor rights violationsIsraeli settlementsMeat production
NuclearPork
Stem cellsTax avoidance
Tobacco
Best in class (among peers)
Business ethics pioneers
Diversity & inclusion pioneers
Environmental protection
Great work environment
Green energy production
Low GHG emissions
Health & safety pioneers
Human & labor rights pioneers
High fossil fuels exportsChild labor
Conventional weapons exportFinancial secrecy
Low share of women in national parliamentPolitical rights
Voice and accountabilityPress freedom
Rule of lawAuthoritarian state
Civil libertiesCorruption
Government effectivenessPeace
Not free statePolitical stability - no violence
Regulatory qualitySanctionsSlavery
Tax haven
Included metrics (2/2)
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18.12.2019 Holdings
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D_EQ D_CORP MSCI World Bloomberg Barclays Global Agg…
606
1756 1646
3076
D_EQ D_CORP MSCI World Bloomberg Barclays Global Agg…
96,6% 99,6% 99,7% 93,2%
• The matching percentage is the share of the given portfolio which is matched in Matter’s database. • A match can be obtained through ISIN or name matching.
• The figure to the left is the number of underlying securities that we have been able to resolve to their issuer, in the analysed equity portfolio and the selected benchmark indices.
Numberof holdings
Matchedpercentage
Number of holdings and matching percentage
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D_EQ D_CORP MSCI World Bloomberg Barclays Global Agg…
554
1745 16392902Matched
holdings
18.12.2019 Sector
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0% 20% 40% 60% 80% 100%
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Ag…
10,9%
9,6%
12,7%
7,7%
33,2%
5,0%
8,1%
5,6% 5,4%
3,7%
4,6%
6,4%
12,1%
46,7%
16,1%
34,2%
11,1%
4,6%
11,7%
6,0%
10,4%
6,3%
11,4%
9,6%
9,6%
3,9%
19,6%
4,9%
4,5%
4,0%
4,9%
3,7%
5,4%
3,2%
4,7%
4,4%
4,2%
3,7%
7,6%
Sector Consumer Discretion… Consumer Staples Data Unavailable Energy Financials Health Care Industrials Information Techn… Materials Real Estate Sovereign State Telecommunicati… Utilities
Sector allocation
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18.12.2019 Regional
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0% 20% 40% 60% 80% 100%
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Ag…
5,4%
12,2%
13,4%
46,5%
12,9%
64,6%
52,7%
52,8%
81,5%
22,9%
30,8%
Region Africa / Middle East Asia Pacific Central Asia Eastern Europe North America South & Central America Western Europe
Regional allocation
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18.12.2019 Carbon_Scope
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• This graph compares the portfolios’ carbon scope
1+2 emissions.
• For more information as to the scope of the
carbon emissions measurement, please refer to the
Appendix.
D_EQ D_CORP MSCI World Bloomberg Barclays GlobalAggregate Bond CORP
34
128
76
137
CRH plc
Exxon Mobil Corporation
Nestlé S.A.
Solvay SA
Chevron Corporation
RWE Aktiengesellschaft
HeidelbergCement AG
LafargeHolcim Ltd
Veolia Environnement S.A.
Eni S.p.A.
RWE Aktiengesellschaft
Exxon Mobil Corporation
ArcelorMittal
LafargeHolcim Ltd
The Southern Company
RWE Aktiengesellschaft
ArcelorMittal
Enel SpA
Metalurgica Gerdau S.A.
Duke Energy Corporation
• There is usually large differences between
carbon emissions of portfolio companies
• To the left the top 5 companies with highest
carbon emission impact on the portfolio are
listed.
• A company’s portfolio impact depends both on
i) the total emissions of the company, ii) the size
of the company and iii) the portfolio’s weight of
that company.
• This is useful when determining how to change
a portfolios environmental profile; obtaining
lower portfolio CO2 emissions can, for example,
be done through less ownership of the
companies with highest emission impact.
Carbon scope 1 + 2 emissions
Portfoliocarbon
emissions
Carbon: 1+2 (tonnes CO2e)
per m€
Companies with largest
carbon emission
impact per portfolio
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18.12.2019 Reserves
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D_EQ D_CORP MSCI World Bloomberg Barclays GlobalAggregate Bond CORP
219
1076
15141616
Exxon Mobil Corporation
Chevron Corporation
ConocoPhillips
Occidental Petroleum Corporation
Noble Energy, Inc.
TOTAL S.A.
Eni S.p.A.
Anglo American plc
OMV Aktiengesellschaft
Origin Energy Limited
Exxon Mobil Corporation
BP p.l.c.
Chevron Corporation
BHP Group
Glencore plc
BP p.l.c.
Cenovus Energy Inc.
Anglo American plc
Glencore plc
Canadian Natural Resources Limited
Portfolioreserves
CO2emissions
Total reserves CO2 emissions
(tonnes) per m€
Companies with largest
reserves CO2 emission
impact per portfolio
• Reserves CO2 emissions represents the amount of
potential or future CO2 emissions owned through
the portfolio.
• The figure to the left is an overview of the
CO2 emissions reserves of the different portfolios
and benchmark indices.
• There are usually large differences between
reserves carbon emissions of portfolio
companies.
• To the left the top 5 companies with highest
reserves carbon emission impact on the
portfolio are listed.
• A company’s portfolio impact depends both on
i) the total emissions of the company, ii) the size
of the company and iii) the portfolio’s weight of
that company.
• This is useful when determining how to change
a portfolios environmental profile; obtaining
lower portfolio reserves CO2 emissions can, for
example, be done through less ownership of the
companies with highest emission impact
Oil, coal and gas reserves CO2 emissions
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18.12.2019 Waste
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D_EQ D_CORP MSCI World Bloomberg Barclays GlobalAggregate Bond CORP
1,7
5,4
3,33,9
Essity AB (publ)
Boliden AB (publ)
Solvay SA
Voestalpine AG
CRH plc
RWE Aktiengesellschaft
Veolia Environnement S.A.
Solvay SA
LANXESS Aktiengesellschaft
Eni S.p.A.
RWE Aktiengesellschaft
South32 Limited
Veolia Environnement S.A.
BHP Group
Sumitomo Metal Mining Co., Ltd.
RWE Aktiengesellschaft
Veolia Environnement S.A.
BHP Group
Industrias Peñoles, S.A.B. de C.V.
The AES Corporation
PortfolioWaste
generation
Waste: landfill & incineration
(tonnes) per m€
Companies with largest
waste generation impact per
portfolio
• This graph compares the portfolios’ waste (landfill &
incineration) generation
• Recycled waste and nuclear waste is not included
• There is usually large differences between waste
generation of portfolio companies
• To the left the top 5 companies with highest waste
generation impact on the portfolio are listed.
• A company’s portfolio impact depends both on i)
the total waste generation of the company, ii) the
size of the company and iii) the portfolio’s weight
of that company
• This is useful when determining how to change a
portfolios environmental profile; obtaining lower
portfolio waste generation can, for example, be
done through less ownership of the companies
with highest waste generation impact
Waste generation
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18.12.2019 Water
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D_EQ D_CORP MSCI World Bloomberg Barclays GlobalAggregate Bond CORP
2084
9041
6669
16811• This graph compares the portfolios' water usage
Exelon Corporation
Suez SA
Dominion Energy, Inc.
ublic Service Enterprise Group Incorporated
Associated British Foods plc
Veolia Environnement S.A.
Suez SA
SSE plc
Iren SpA
Origin Energy Limited
Exelon Corporation
SSE plc
Enel SpA
Dominion Energy, Inc.
ENGIE SA
Exelon Corporation
Electricité de France S.A.
SSE plc
Enel SpA
ENGIE SA
PortfolioWaterusage
Water: direct & purchased
(cubic metre) per m€
Companies with largest
water usage impact per
portfolio
• There is usually large differences between water
usage of portfolio companies
• To the left the top 5 companies with highest water
usage impact on the portfolio are listed.
• A company’s portfolio impact depends both on i)
the total emissions of the company, ii) the size of
the company and iii) the portfolio’s weight of that
company
• This is useful when determining how to change a
portfolios environmental profile; obtaining lower
portfolio water usage can, for example, be done
through less ownership of the companies with
highest water usage impact
Water usage
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18.12.2019 Renewables
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D_EQ D_CORP MSCI World Bloomberg Barclays GlobalAggregate Bond CORP
2,6
10,4
8,5
15,0
VERBUND AG
Orkla ASA
NextEra Energy, Inc.
Xcel Energy Inc.
Dominion Energy, Inc.
RWE Aktiengesellschaft
Veolia Environnement S.A.
SSE plc
Iren SpA
Origin Energy Limited
RWE Aktiengesellschaft
Enel SpA
NextEra Energy, Inc.
Iberdrola, S.A.
E.ON SE
RWE Aktiengesellschaft
Enel SpA
NextEra Energy, Inc.
ENGIE SA
E.ON SE
Companies with largest renewable
energy generation impact per
portfolio
Renewable energy:
wind, solar,hydroelectric,geothermal,wave & tidal
(MWh) per m€
PortfolioRenewable
energygeneration
• The renewable energy category contains wind,
solar, geothermal, hydroelectric and
wave & tidal
• There are usually large differences between
renewable energy generation of portfolio
companies
• To the left the top 5 companies with highest
renewable energy generation impact on the
portfolio are listed.
• A company’s portfolio impact depends both on i)
the total renewable energy generation of the
company, ii) the size of the company and iii) the
portfolio’s weight of that company
• This is useful when determining how to change a
portfolios environmental profile; obtaining higher
portfolio renewable energy generation can, for
example, be done through increased ownership of
the companies with highest renewable energy
generation impact
Renewable energy generation
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18.12.2019 Heat_Map
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Entity.sector
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
Utilities 307,50 1.317,37 706,28 862,28
• The heatmaps seen to the left represent
a sector breakdown of the portfolios’
carbon (scope 1+2) figures shown
previously.
• The numbers represent the carbon
emissions per portfolio within each sector,
if that sector was to constitute the full
portfolio. If the number is 0, the given
portfolio doesn't hold any companies
within that particular sector.
• As a portfolio consisting solely of e.g.
financials or IT companies will almost
always carry lower carbon emissions than
a portfolio containing only e.g. energy or
materials companies, this analysis is
valuable to determine how the portfolios
and benchmarks fare per sector. For
example, if a portfolio has higher
Materials carbon emissions compared to
the benchmarks, the portfolio holds
relatively high-emitting Materials
companies compared to the benchmarks.
• A breakdown like the one shown here
can be made for all of the environmental
metrics
Carbon scope 1+2 emissions per sector
Entity.sector
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
Industrials 44,43 61,13 68,96 84,24
Entity.sector
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
Materials 195,45 1.114,21 369,42 878,35
Entity.sector
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
Energy 292,94 412,73 320,23 313,66
Entity.sector
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
Consumer Discretionary 18,13 46,67 25,32 61,94
Entity.sector
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
Information Technology 3,63 7,33 7,46 7,93
Entity.sector
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
Consumer Staples 23,36 26,98 31,00 50,05
Entity.sector
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
Financials 1,70 1,10 2,38 1,32
Entity.sector
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
Health Care 4,75 7,99 6,64 8,74
Entity.sector
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
Real Estate 11,36 5,59 9,94 72,83
Entity.sector
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate Bond CORP
Telecommunication Services 15,67 28,50 17,65 25,53
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18.12.2019 Controversial
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D_EQ
D_CORP
MSCI World
Bloomberg Barclays …
87
38
306
197
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate B…
12 %
10 %
21 %
20 %
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate B…
48 %
22 %
47 %
37 %
Significantcontroversial
corporateflags
Allcontroversial
corporateflags
• The statistics to the left capture all
companies in the portfolios which are
flagged withone or more of the
following topics: defense & weapons,
fossil fuels, environmental damage,
tobacco, human/labor rights violations
and corruption
• The statistics to the left capture all
companies in the portfolios which are
flagged with any controversial corporate
flag; these can all be seen on the intro
pages.
Number of companiesShare of portfolio
Aggregated statistics of controversial corporate flags
D_EQ
D_CORP
MSCI World
Bloomberg Barclays …
195
86
556
317
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18.12.2019 Controversial_Shares
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Corruption
Defense & weapons
Environmental damage & disasters
Fossil fuels
Human & labor rights violations
Tobacco
0,0 %
0,4 %
1,0 %
5,2 %
5,6 %
2,4 %
0,0 %
0,7 %
0,6 %
7,4 %
1,5 %
0,1 %
0,2 %
3,2 %
3,9 %
10,9 %
7,5 %
1,1 %
0,5 %
1,4 %
4,3 %
13,7 %
5,3 %
0,9 %
Portfolio D_EQ D_CORP MSCI World Bloomberg Barclays Global Aggregate Bond CORP
Share of portfolio
Portfolio shares per significant controversial corporate flag
19Matter
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18.12.2019 Beneficial
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D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate …
77
55
187
132
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate …
32 %
19 %
21 %
17 %
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate …
112
80
266
174
Significantbeneficialcorporate
flags
Allbeneficialcorporate
flags• The statistics to the left capture all companies in the
portfolios which are flagged with any beneficial
corporate flag; these can all be seen on the intro
pages.
• The statistics to the left capture all companies in
the portfolios which are flagged with one or
more of the following beneficial topics: diversity &
inclusion pioneers, environmental protection,
green energy production and human/labor rights
pioneers.
Share of portfolio Number of companies
Aggregated statistics of beneficial corporate flags
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17
D_EQ
D_CORP
MSCI World
Bloomberg Barclays Global Aggregate …
40 %
28 %
30 %
24 %
18.12.2019 Beneficial_Shares
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Diversity & inclusion pioneers
Environmental protection
Green energy production
Human & labor rights pioneers
23,8 %
0,4 %
4,1 %
9,5 %
15,4 %
0,0 %
3,1 %
1,3 %
13,8 %
0,4 %
5,8 %
4,5 %
10,1 %
0,2 %
6,8 %
1,4 %
Portfolio D_EQ D_CORP MSCI World Bloomberg Barclays Global Aggregate Bond CORP
Share of portfolio
Portfolio shares per significant beneficial corporate flag
Matter
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18.12.2019 End
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Appendix
Matter
Matter
2
Controversial sovereigns
Controversial sovereign flags
Authoritarian state
Child labor Civil libertiesGovernment effectiveness
Not free state Political rightsPolitical
stability - no violence
Regulatory quality
Rule of law SanctionsState
corruptionVoice and
accountabilityD Sov E Sov S Sov R Sov BBGABS
China x x x x x x x
Kazakhstan x x x x
Kuwait x x
Mexico x x x x x
Thailand x x x x x
Peru x x x x x
Philippines x x x
Qatar x x x x
Russia x x x x x x x x
Saudi Arabia x x x x x x
• The portfolios hold relatively few controversial sovereigns (5: Mexico, Thailand, Peru, Philippines and Russia), compared to the benchmark. Which holds 10 unique controversial sovereigns
• BBGABS: Bloomberg Barclays Global Aggregate Bond (sovereigns)
18.12.2019 Appendix-Definitions-1
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Trucost data and estimates Calculations are based on Trucost Eboard data. The data samples employed are either reported by portfolio companies or estimated based on either prior emissions data or industry and peer performance. We calculate the carbon footprint for both equities and corporate bonds, but do not have data available on government bonds. Carbon Scope 1 (tonnes CO2e)Greenhouse gas emissions generated from burning fossil fuels and production processes which are owned or controlled by the company (reference: GHG Protocol). Carbon Scope 2 (tonnes CO2e)Greenhouse gas emissions from consumption of purchased electricity, heat or steam by the company (reference: GHG Protocol). Carbon Scope 3 (tonnes CO2e)Other indirect Greenhouse gas emissions, such as from the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities (e.g. T&D losses) not covered in Scope 2, outsourced activities, waste disposal, etc. (in line with GHG Protocol standards) (reference: GHG Protocol).
CO2 Equivalent (CO2e)Each greenhouse gas differs in its ability to absorb heat in the atmosphere. Calculations of greenhouse gas emissions are presented in units of millions of metric tons of carbon equivalents (MMTCE), which weights each gas by its GWP value, or Global Warming Potential. The Global Warming Potentials used in this analysis are:
CO2 equivalent1
25 22,8 298
7850 2400
Greenhouse gas• Carbon Dioxide• Methane• Sulphur Hexaflouride• Nitrus Oxide• Per Fluoro Carbons• Hydro Flouro Carbons
Definitions (1/2)
Matter
18.12.2019 Appendix-Definitions-2
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Total Reserves CO2 emissions (tonnes)The calculations of total reserves for the portfolio is based on the list of companies in the portfolio that disclose fossil fuel reserves. These reserves have been converted into CO2emissions to express amount of potential/future CO2 emissions owned by the portfolio. Water Direct + Purchased (m3)The volume of water that is directly abstracted or purchased from utility companies Waste generation (tonnes)Quantity of waste that is generated by the company and incinerated or disposed to landfill Renewable energy generation (MWh)MWh energy produced through renewable energy sources (hydro, solar, wind, geothermal, wave & tidal)
Definitions (2/2)
Matter
18.12.2019 Methodology
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Methodology: Environmental Metrics
Matter