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Sustainable finance & SRI episode 4: carbon footprint

The carbon footprint is the first indicator used by investors to measure the contribution to global warming of each stock in a financial portfolio. How does it work? What are its drawbacks?
Written by
Marion AUBERT
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Carbon footprinting applied to financial portfolios

When it comes to extra-financial issues, the environment and, more specifically, the fight against global warming, is the theme on which investors are focusing the most. Since COP21, the financial sector has been in the spotlight: its contribution is essential if we are to meet the stated objective of keeping global warming below 2 degrees Celsius since the pre-industrial era.

The carbon footprint is the primary indicator used by investors to measure the contribution to global warming of each stock in a financial portfolio.

How does it work? What are its drawbacks?

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