Introduction
Carbon intensity metrics provide valuable insights into the environmental impact of your portfolio or fund. For fund managers, understanding these metrics is key to aligning your investments with sustainability goals, such as reducing carbon emissions and meeting regulatory requirements. These metrics help you compare emissions relative to financial indicators, such as revenue or full-time equivalents (FTEs). This guide will walk you through the concept of carbon intensity, why it matters, and how you can access this information within the KEY ESG platform.
What is Carbon Intensity?
Carbon intensity is a measure of the carbon dioxide (CO₂) emissions produced per unit of economic output. For your portfolio or fund, the carbon intensity metric typically shows how much CO₂ is emitted relative to key financial performance metrics, such as:
Revenue: CO₂ emissions per unit of revenue (e.g., Kg CO₂ per GBP)
Full-time equivalent (FTE): CO₂ emissions per employee (e.g., Kg CO₂ per FTE)
In the example provided for the Californium I, II and III funds, you can see the carbon intensity split across Scope 1, 2, and 3 emissions, measured both against revenue and FTE.
Why is Carbon Intensity Important?
Carbon intensity allows you to:
Evaluate the carbon efficiency of your portfolio or fund.
Compare emissions across different funds or assets, even if they vary in size.
Track progress towards sustainability goals.
Meet growing regulatory demands from frameworks such as the CSRD (Corporate Sustainability Reporting Directive) and SFDR (Sustainable Finance Disclosure Regulation).
How to Access Carbon Intensity Metrics in the KEY ESG Platform
To access your carbon intensity metrics, follow these steps:
Log into the KEY ESG Platform: Navigate to the fund manager portal.
Under analytics, select 'reports'
Select Your Data Request: Under the ‘Portfolio’ tab, select the relevant data request from the dropdown
Choose the Right Filters
View Your Carbon Intensity: The system will display the carbon intensity metrics for each scope (Scope 1, Scope 2, and Scope 3) alongside your chosen financial indicators (e.g., revenue or FTE). You can view totals for each scope, as well as intensity metrics for Scope 1 and 2 combined or across all three scopes.
A Note on Carbon Accounting Methodology
Your Scope 2 emissions, and therefore any carbon intensity metric that includes Scope 2, can be calculated using either a market-based or location-based methodology. Fund managers can choose which methodology is reflected when exporting reports.
Because carbon intensity is a ratio of emissions to a financial indicator (revenue or FTE), switching between methodologies will change the emissions figure feeding into that ratio, and therefore the intensity result itself. This is particularly relevant if you're reporting under frameworks with a specific methodology requirement.
Before reviewing or exporting your carbon intensity metrics, confirm which methodology is selected, so the figures you're comparing across funds or reporting periods are on a like-for-like basis.
Next Steps
By regularly reviewing and analysing these metrics, fund managers can identify opportunities to reduce emissions, improve portfolio performance, and better communicate sustainability efforts to investors. Should you have any questions about carbon intensity metrics or require further support, please contact KEY ESG support through the in-platform chat or via email at support@keyesg.com.