Translate your investment capital into financed greenhouse gas emissions (tonnes CO2e / $1M invested) and calculate the environmental impact of shifting to ESG leaders.
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 the Partnership for Carbon Accounting Financials (PCAF) standard to measure your portfolio’s financed emissions intensity.
Carbon intensity is measured in metric tonnes of CO₂ equivalent per million dollars invested (tCO₂e / $1M). Broad-market indices like the standard S&P 500 average approximately 140 to 150 tCO₂e / $1M, heavily influenced by fossil fuel exploration, utility coal/gas generation, and heavy manufacturing.
By tilting portfolio allocations toward companies with verified Science-Based Targets (SBTi) and transitioning away from high-carbon laggards, investors can reduce their financed carbon intensity by 50% to 70% without compromising financial diversification.
PCAF Financed Carbon Footprint Formula
Financed Emissions (tCO2e) = ∑ [ (Investment in Company_i / Enterprise Value_i) × Company Emissions_i ]Where your ownership fraction of each portfolio company (investment divided by Enterprise Value Including Cash, EVIC) is multiplied by that company’s reported Scope 1 and Scope 2 greenhouse gas emissions.
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.
Benchmarking vs. Major Indices
Measure your portfolio’s financed emissions against the S&P 500 (~145 tCO2e/$1M) and MSCI ESG Leaders (~45 tCO2e/$1M).
Frequently Asked Questions
What is a portfolio carbon footprint?
A portfolio carbon footprint measures the total greenhouse gas emissions financed by 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 fossil fuel producers and tilting allocations toward energy-efficient companies with active Science-Based Targets (SBTi) reduces portfolio carbon intensity by 50% to 70% relative to standard market indices.
Does decarbonizing my portfolio hurt investment returns?
Academic research from NYU Stern, Harvard Business School, and Morgan Stanley indicates that low-carbon and ESG-screened portfolios have delivered comparable or superior risk-adjusted returns over long horizons.