Good CO2 record increases market value of companies

The renowned investment and consulting firm Arthur D. Little in co-operation with the ECPI College of Technology carried out a “Carbon Intensity Rating”. To this end, the turnover of 1000 selected companies listed on the stock exchange was correlated with their CO2 emissions. It turned out that companies with particularly low CO2 emissions and ambitious CO2 emission targets had a stock exchange value which was on average 20% higher than that of companies with average or high emissions and just moderate emission targets.

The best companies were then grouped into the “Carbon Winners Equity Index” the performance of which was established by comparing it with the Morgan Stanley Capital International Index (MSCI) lndex World. As a result it turned out that the performance of the “Carbon Winners” was above average. Those companies analysed had a stock exchange capitalization of at least one billion Euros.

The performance of the Carbon Winners Equity Index shows how strongly strategic measures on the reduction of CO2 emissions affect the performance of companies on the capital market. Consultants therefore assume that to companies willing to secure their competitive edge innovation in the field of climate protection will become a key factor. “Whoever wants to be successful in the long run has to anticipate how production processes will look like in the year 2020”, is the summing up of the rating by Dr. Michael Träm, CEO with Arthur D. Little Worldwide, who also pointed to the corresponding counselling programmes of his company.

The brochure “The Carbon Margin” in English as well as additional data on the index is available for download. GERMAN