• Erste Asset Management (EAM) has further reduced the carbon footprint of its equity funds
  • The average CO2 intensity of the EAM equity funds is only 61.8% compared to a global equity index (previous year: 77.4%)
  • The CO2 emissions of companies will become even more relevant in the future due to stricter rules regarding the compliance with the Paris Climate Agreement

Within the framework of the Montreal Carbon Pledge, Erste Asset Management has published its cumulative carbon footprint for its equity mutual funds for the third time. The result, which compares explicitly sustainable funds as well as traditional funds to the global equity market, was convincing yet again:

The CO2 intensity of the EAM equity funds taken into account is more than 38% below the level of the global equity universe. We have reduced this value again significantly relative to the previous year. Our in-depth analysis shows that this result is mainly due to the high quality of the companies in the most CO2-intense sectors,” explains Gerold Permoser, Chief Investment Officer of Erste Asset Management. If we were to only take the sustainable EAM equity funds into account, the cumulative carbon footprint would even be less than half of the referential value (45.9%).

Gerold Permoser, CIO Erste AM
Copyright: Hinterramskogler/ Erste Asset Management

What does CO2 intensity mean? 

There is a plethora of methods to calculate the carbon footprint. EAM calculates the footprint of its funds on the basis of the weighted CO2 intensity of the companies it holds in its funds. To this end, step one consists of our research partners’ ascertaining the greenhouse gases of the companies in our fund. They may have been caused directly by the companies (scope 1 emissions) or indirectly on the basis of the consumption of energy, heat, or similar resources (scope 2 emissions). In order to ensure comparability across various sizes, the emission values are standardised over the respective sales figures.

In step two, the CO2 intensities of the individual companies are aggregated for the various funds into a weighted average.