The State Street Institutional Investor Indicators provide investors, policymakers, and the public with insights into the aggregated and anonymized positioning, risk appetite, and portfolio carbon exposures of thousands of institutional investors around the world, representing trillions of dollars in assets.
The Carbon Indicator measures the level of carbon exposure in institutional portfolios and reveals what is driving the shifts in overall carbon exposure as well as the carbon efficiency with which portfolio companies generate revenue.
- Measures the amount of carbon exposure in institutional portfolios, in terms of aggregate portfolio emissions (tonnes of CO2 emitted) and aggregate portfolio carbon intensity (carbon efficiency, or emissions divided by million USD revenue)
- Can be broken down into regions as well as drivers (i.e., whether carbon reduction is due to company-level decisions around emissions or investor decisions to buy or sell carbon-exposed companies)
- Developed in partnership with S&P Global, a market leader in carbon data, and powered by S&P Global Sustainable1
- Released annually
From March 2022 to March 2023, investor carbon risk moved in two different directions according to our distinct metrics:
- Emissions exposures increased, as the post-COVID recovery in economic activity continued, and high emitting company valuations rose in sectors such as Energy
- Intensity exposures fell as carbon efficiency rose, driven by Energy and Materials companies’ revenue growth outpacing their emissions