EQ Investors launches portfolio carbon calculator

Wealth manager EQ Investors has developed a carbon calculator to help clients see the impact of their investments on the climate.

In a bid to boost transparency for clients and prospective clients, the tool shows them carbon emissions from a certain amount of wealth invested in the equity section of their EQ Investors portfolio, or from an amount invested in a number of EQ Investors portfolios.

It also states the difference in carbon emissions between their portfolio and a global equity index and illustrates that difference as activities such as powering a number of homes or driving a certain distance.

Finally, the tool shows clients a breakdown of the direct and indirect emissions from the portfolio compared with the world equity index.  

Louisiana Salge (pictured), senior sustainability specialist at the firm, wrote on EQ Investors’ website that apart from a smaller carbon footprint meaning less of a contribution to climate change, it also means less climate transition risk in the portfolio.

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“The investments are less exposed to climate transition risks, which can come from anticipated carbon taxes, more stringent industrial regulations, and reputational damage,” Salge stated.

She pointed out the difference between carbon emissions from client investments and what the amount would be from investing the same amount elsewhere does not mean an investor is saving that quantity of emissions from being emitted in the real world

“The impact of investing with a low-carbon objective is instead a systemic one and can have significant collective impact,” noted Salge.

The interactive tool is available on the wealth manager’s website and provides options to input the investment amount, the portfolio strategy and the portfolio risk grade.