Carbon footprint of the holdings of corporate bonds

The carbon footprint is a calculation of the greenhouse gas emissions that arise from, for example, a company’s operations. A common metric used when reporting the carbon footprint is carbon intensity, which shows a company’s emissions in relation to its revenue.

Here, we report the carbon footprint for the Riksbank’s holdings of corporate bonds. We have weighted each company’s carbon intensity against its share of the corporate bonds in the Riksbank’s portfolio (the so-called ‘Weighted Average Carbon Intensity, WACI’).

The carbon footprint calculation is based on both the company’s emission data and quantitative emission estimates. As the majority of the companies in the portfolio do not disclose their emissions, the results are relatively uncertain and provide more of an indication of the carbon footprint for the Riksbank’s holdings of corporate bonds rather than a precise calculation (see note).

Weighted average carbon intensity

Figure: Weighted average carbon intensity

Note. The weighted average carbon intensity is reported in tonnes of carbon per USD million of revenue. The Riksbank has holdings in a company where data for greenhouse gas emissions supplied by Sustainalytics are missing. These holdings have been excluded from the calculation (corresponding to 0.7 percent of the total portfolio).

The weighted average carbon intensity is reported for all companies the Riksbank has in its portfolio of corporate bonds and calculated on the basis of companies’ reported emissions and estimates made by Sustainalytics. Of the companies that fulfil the Riksbank’s purchase criteria as of 1 January, about 44 per cent of them (27 out of 62) disclose their greenhouse gas emissions according to the data delivered by Sustainalytics.

As of last December, the weighted average carbon intensity was 116 tonnes of carbon per USD million of revenue. This number is updated quarterly on the Riksbank’s website. Source: Sustainalytics and the Riksbank.”

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Updated 03/01/2022