Portfolio Carbon Footprint
From Open Risk Manual
Revision as of 17:22, 11 March 2022 by Wiki admin (talk | contribs)
Definition
Portfolio Carbon Footprint is the total Carbon Footprint of a Portfolio composed e.g., of financial contracts, procurements or other economic contract.
Methodology
Carbon footprinting of a portfolio is related to the corporate / project carbon footprinting approach of the GHG Protocol under the assumption the portfolio consists of individual contracts and all these have an individually defined carbon footprint. The carbon footprint of a portfolio corresponds to the sum of all individual carbon footprints.
Issues and Challenges
- The footprint terminology might somewhat ambiguous as to the precise scope of emissions that is being included. In some contexts the term aims to indicate that it includes the upstream (Scope 3) emissions in the supply chain of the entity being financed whereas in other contexts the most important emissions might be downstream Scope 3 emissions.
