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This methodology sets out how Integrum ESG calculates five footprints for any portfolio: carbon, waste and water, plus two positive impact footprints, tax contributed to governments and jobs supported. Each footprint is expressed per $1M invested, shows which holdings contribute most and states what share of the portfolio does not disclose the underlying data.
Purpose
Why portfolio footprints matter
Many asset owners now expect their asset managers to disclose the carbon footprint of their portfolios, and carbon footprint is one of the core metrics behind TCFD reporting. Footprint reporting is also extending beyond carbon, as investors ask about the waste, water and social outcomes of what they own.
A footprint answers a simple question: for every $1M invested, how much of a given output is the portfolio responsible for? Expressing each footprint per $1M lets investors compare portfolios of any size and see which holdings drive the result.
Footprints
The five footprints
| Footprint | What it measures | Unit |
|---|---|---|
| Carbon | The Scope 1 and 2 greenhouse gas emissions the portfolio is responsible for | tCO2e per $1M |
| Waste | The waste generated by the companies held | Tonnes per $1M |
| Water | The water consumed by the companies held | m³ per $1M |
| Tax contribution | The tax the companies held contribute to governments, a positive impact footprint | $ per $1M |
| Employment | The full-time jobs the companies held support, a positive impact footprint | FTE per $1M |
Method
How each footprint is calculated
All five footprints follow the same four steps, using each company’s latest disclosed figure:
- Company total The company’s total for the year: its emissions in tCO2e, waste in tonnes, water consumption in m³, tax contributions in $ or jobs in FTE.
- Relative to value The total divided by the company’s value in $M, giving its output per $1M of value. Enterprise value is used by default, and users can switch to market capitalisation.
- Holding contribution The figure per $1M multiplied by the holding’s weight in the portfolio, giving the footprint from that holding.
- Portfolio footprint The contributions from every disclosing holding summed to give the total disclosed footprint, then grossed up for the share of the portfolio that does not disclose to give the total footprint.
Every step is shown for every holding, so users can scroll across the portfolio and see which companies make the biggest contribution to each footprint.
Worked examples
Worked examples
One holding
A company emits 400,000 tCO2e a year and has an enterprise value of $8,000M, so it emits 50 tCO2e per $1M of value. It makes up 2% of a portfolio, so it adds 1.0 tCO2e per $1M (50 × 2%) to the portfolio’s carbon footprint.
One portfolio
An illustrative global equity portfolio:
| Footprint | Total disclosed footprint | Portfolio not disclosing |
|---|---|---|
| Carbon | 42.6 tCO2e per $1M | 1.2% |
| Waste | 3.4 tonnes per $1M | 6.5% |
| Water | 210 m³ per $1M | 18.0% |
| Tax contribution | $41,500 per $1M | 0.8% |
| Employment | 1.9 FTE per $1M | 0.5% |
A single high-emitting holding can weigh heavily on a portfolio’s carbon footprint. Our analysis of the carbon exposure behind the AI power trade shows how much emissions can differ between companies in the same investment theme.
Disclosure
Showing undisclosed data
Some companies do not disclose every figure, and these are marked N/D at holding level. For each footprint, we show the percentage of the portfolio, by weight, held in companies that have not disclosed the underlying number, and two totals: the total disclosed footprint, built from the holdings that do disclose, and the total footprint, which grosses the disclosed figure up for the share that does not. The gross-up assumes the holdings that do not disclose have the same footprint as those that do.
Output
Using the results
Client and LP reporting
Report the carbon, waste, water, tax and employment footprints of each portfolio to clients and asset owners.
RFPs and due diligence
Populate the footprint questions in a prospective client’s RFP form.
Own templates
Export the holding-level data through our API into a firm’s own reporting template.
Portfolio construction
See which holdings drive each footprint and how changing a position would move the result.
For regulatory climate reporting, our TCFD Reporting and Climate VaR Methodology sets out how we calculate carbon footprint, weighted average carbon intensity and Climate VaR, including proxy values for companies that do not disclose.
FAQs
Frequently asked questions
What is a portfolio carbon footprint?
A portfolio carbon footprint is the greenhouse gas emissions a portfolio is responsible for per $1M invested. Each company’s emissions are divided by its value, multiplied by its weight in the portfolio and summed across all holdings.
Which footprints does Integrum ESG calculate?
Five: carbon (tCO2e per $1M), waste (tonnes per $1M), water (m³ per $1M), tax contribution ($ per $1M) and employment (FTE per $1M). Tax contribution and employment are positive impact footprints.
How are companies that do not disclose treated?
For each footprint, we show the percentage of the portfolio held in companies that have not disclosed the figure. The total disclosed footprint is built from the holdings that do disclose, and the total footprint grosses it up for the share that does not. For example, a total disclosed carbon footprint of 50.0 tCO2e per $1M with 4% of holdings not disclosing gives a total carbon footprint of 50.0 ÷ (1 − 0.04) = 52.1 tCO2e per $1M.
Can I choose how company value is measured?
Yes. Enterprise value is used by default, and a setting on the Footprint tab switches the calculations to market capitalisation.
Can the footprint data be exported?
Yes. Holding-level and portfolio-level footprint data can be exported through our API to populate a firm’s own reporting templates or a client’s RFP form.
How does the footprint relate to TCFD reporting?
Carbon footprint is one of the core TCFD climate metrics. Our TCFD Reporting and Climate VaR Methodology explains how it is calculated for TCFD reporting, alongside weighted average carbon intensity and Climate VaR.
See the footprint of your portfolios
Speak to our team to see the carbon, waste, water, tax and employment footprints of your portfolios and the holdings that drive them.