Unlocking Value Through Avoided Emissions in Investment Portfolios

Schroders’ latest paper introduces enhancements to its proprietary Avoided Emissions framework, designed to identify companies enabling economy-wide decarbonisation beyond conventional carbon metrics.

• A back-test shows a diversified, low-risk equity portfolio tilted towards avoided emissions would have outperformed the MSCI ACWI by 10% over five years.

• The expanded framework covers additional sectors such as transport, digital infrastructure, and transition metals, broadening the investable universe by ~40%.

• Policy tailwinds in Europe, China, and India reinforce structural growth in clean technologies and transition enablers.

Would you like to dive deeper into how this framework uncovers overlooked climate-transition opportunities across sectors?