The default illustrative portfolio model estimates 7.5 Tonnes CO2e/yr. Explore how illustrative emissions-intensity assumptions change a portfolio model. This does not measure your holdings or demonstrate real-world emissions avoided by an investment decision.
Key Model Assumptions & Benchmark Data
- U.S. Environmental Protection Agency (EPA) & PCAF (EPA GHG Equivalencies (retrieved 2026-10-20)):EPA GHG Equivalencies: ~45 urban tree seedlings grown for 10 years per metric ton CO2 (0.022 tCO2/tree). The 145, 75, and 28 tCO2e/$1M strategy values are illustrative calculator model assumptions.
Interactive Model & Inputs
Adjust variables below to instantly compute real-time projections and amortization.
Calculation Results & Payback Projections
Financed Emissions & Portfolio Carbon Accounting
Every dollar invested in public equities, corporate bonds, or private equity platforms indirectly finances real-world greenhouse gas emissions. Our Portfolio Carbon Footprint Calculator applies a simplified financed-emissions intensity model inspired by the Partnership for Carbon Accounting Financials (PCAF) framework.
Carbon intensity is modeled in metric tonnes of CO₂ equivalent per million dollars invested (tCO₂e / $1M) using three illustrative calculator presets: 145 tCO₂e / $1M for a traditional broad-market index, 75 tCO₂e / $1M for an ESG-screened portfolio, and 28 tCO₂e / $1M for a climate-solutions tilt.
Under these model assumptions, shifting allocations from the 145 tCO₂e / $1M baseline to the 75 or 28 tCO₂e / $1M preset reduces modeled portfolio carbon intensity by 48% to 81%.
Portfolio Carbon Intensity & Avoided Emissions Formula
Financed Emissions (tCO2e) = (Portfolio Value / $1,000,000) × Style Intensity Factor; Trees Equiv = Avoided Tonnes × 45Multiplies your portfolio value (in $ millions) by the selected strategy’s illustrative carbon intensity factor (145, 75, or 28 tCO2e/$1M) and converts avoided tonnes against the 145 tCO2e/$1M baseline using the EPA GHG Equivalencies factor (~45 tree seedlings grown for 10 years per metric ton CO2).
Worked example: understand your inputs
The selected scenario uses 75 tCO2e/$1M. Applied to this portfolio value, that produces 7.5 Tonnes CO2e/yr, with a modeled difference of 7 Tonnes vs illustrative baseline against the baseline.
| Input | Example value | What to enter |
|---|---|---|
| Portfolio Value | 100000 | Portfolio market value in dollars. |
| Portfolio Style | esg | Illustrative emissions-intensity scenario: index, ESG or climate-focused. |
How to interpret the result
Value divided by one million, multiplied by the scenario intensity, produces financed tonnes. Changing the scenario demonstrates sensitivity to an assumed intensity; it does not measure your holdings or show emissions physically prevented.
What this estimate leaves out
The 145, 75 and 28 tonne factors are illustrative, not current verified index measurements. A real financed-emissions assessment requires issuer data, attribution factors, reporting boundaries and disclosure dates. Tree equivalents are illustrative comparisons, not offsets or verified removals.
Carbon Emissions Scope Breakdown
Scope 1: Direct Operations
Direct emissions from company-owned facilities, factories, industrial boilers, and vehicle delivery fleets.
Scope 2: Purchased Energy
Indirect emissions generated from purchased electricity, steam, heating, and cooling consumed across corporate facilities.
Scope 3: Value Chain
Broader upstream supply chain emissions and downstream customer usage of manufactured products and services.
Scenario Comparison Presets
Compare your portfolio across three illustrative intensity presets: Traditional Index (145 tCO2e/$1M), ESG Screened (75 tCO2e/$1M), and Net-Zero / Climate Solutions (28 tCO2e/$1M).
Frequently Asked Questions
What is a portfolio carbon footprint?
A portfolio carbon footprint measures the greenhouse gas emissions associated with your investment capital, expressed in metric tonnes of CO₂ equivalent (tCO₂e) per million dollars invested.
What is the difference between Scope 1, Scope 2, and Scope 3 emissions?
Scope 1 covers direct emissions from company facilities. Scope 2 covers indirect emissions from purchased electricity. Scope 3 covers broader supply chain and product lifecycle emissions.
How does sustainable ESG investing reduce portfolio emissions?
Screening out high-emitting producers and tilting allocations toward lower-intensity companies reduces modeled portfolio carbon intensity relative to an unscreened broad-market baseline.
Where does the 45 tree seedlings per tonne factor come from?
The U.S. EPA Greenhouse Gas Equivalencies Calculator estimates that one medium-growth urban tree seedling grown for 10 years sequesters approximately 0.022 metric tons (22.2 kg) of CO₂, or roughly 45 tree seedlings per metric ton of CO₂.
Authoritative Benchmark Sources & Active Incentives
EPA Greenhouse Gas Equivalencies Calculator & Illustrative Intensity Presets (U.S. Environmental Protection Agency (EPA) & PCAF)
EPA GHG Equivalencies: ~45 urban tree seedlings grown for 10 years per metric ton CO2 (0.022 tCO2/tree). The 145, 75, and 28 tCO2e/$1M strategy values are illustrative calculator model assumptions.
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