An Overview of the ASSET4 Carbon Estimate Methodology

The models work with historical carbon and energy data normalised by number of employees and revenue and are based on ASSET4's industry-leading extra-financial database covering over 2,500 global companies.

There are three types of models:

  • CO2 model
  • Energy model
  • Median model

The CO2 model works with a company’s own latest reported CO2 data, if there is any from the previous two years and makes a calculation based number of employees and revenue for the year in question. The Energy model works with a company’s total energy consumed, if reported and uses that to compare it with companies within the same industry or sector. The Median model computes the CO2 / number of employees ratio for all companies within a company’s industry and then uses the median value as the estimate.

As you can see, some of the estimates rely on comparison data from companies within the same industry or sector, since all companies have completed their reporting cycles for 2007 (even if, only 33% actually reported their CO2 emissions), we can create estimates for every company within the ASSET4 universe.

As companies are just now beginning to report for 2008, the number of 2008 estimates will be growing over the next few months. Please note that the annual subscription rate for the carbon estimates includes monthly updates, ensuring that you have the most up-to-date information available.