Unlocking Value Through Avoided Emissions in Investment Portfolios

Schroders /

01-09-2025

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?

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