19 July 2013: The UN Environment Programme Finance Initiative (UNEP FI) has released a brief under its carbon portfolio, titled ‘Measuring, disclosing and managing the carbon intensity of investments and investment portfolios.’ Aimed at investors, the brief outlines the foundations of a market standard to measure and report financed carbon emissions.

Developed by UNEP FI in collaboration with a group of private sector partners, the Investor Briefing argues that investors should use carbon footprinting as a tool to understand and mitigate carbon risk. According to the brief, the current lack of political ambition on climate change is likely to lead to more radical policy interventions as the physical impacts of climate change intensify resulting in increasing disruptive consequences.

The 36-page brief presents ways for investors to understand climate change risk associated with investment portfolios including by: understanding and identifying costs and risks associated with greenhouse gas (GHG) emissions; measuring carbon risk exposure and performance; carbon footprinting at the company and portfolio levels; and managing risk exposure by reducing the carbon footprint of investments and portfolios. It also includes four case studies of leading investors’ experiences in using carbon footprinting to assess portfolio risk. [UNEP Press Release] [Publication: Portfolio Carbon: Measuring, Disclosing and Managing the Carbon Intensity of Investments and Investment Portfolios]