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Environmental KPIs

Greenhouse Gases:

Many countries are developing a mix of policy measures, including market-based instruments and legislation, to reduce or abate greenhouse gas (GHG) emissions[1]. Applying a value to carbon and other GHGs illustrates the potential financial implications that emissions have upon a company's bottom line. Incorporating carbon pricing into investment decisions can help position portfolios for the transition to a low-carbon economy.

Water Abstraction:

Pressures are mounting on water resources due to a growing population, increasing demand and a changing climate which is affecting the security of water-reliant commodities and services. Valuing water according to its scarcity highlights companies' exposure to water risk versus sector peers and their financial resilience in the face of increasing costs.

Waste Generation:

The collection and disposal of waste degrades the environment and imposes external costs on society. The quantification of the external cost of waste is complex as there are many externalities associated with its disposal. The external costs take varied forms: local pollution, global pollution, noise, visual intrusion, amongst others. The prices of these impacts are not directly observable in the market.

Air Pollutants:

Air pollutants include sulphur dioxide (SO2), nitrogen oxides (NOx), particulate matter (PM), ammonia (NH3), carbon monoxide (CO) and volatile organic compounds (VOCs). Each has a set of impacts on human health, buildings and/or crop and forest yields.

The default price sets we use (as of February 2021) are:

trucost environment