DAX40: Index carbon analysis

Our latest Market Snapshot examines emissions trends across Germany’s DAX40 index. It highlights the concentration of emissions in a handful of firms, the divergence between operational and supply chain emissions, and the resulting transition risks for investors.

Key Findings:

• Scope 1 & 2 emissions continued to fall in 2024, while Scope 3 edged higher
• Top 3 emitters represent ~83% of index emissions (~10% of market cap)
• Index faces up to 71% potential carbon liability under IPCC Net Zero scenario by 2050

Most sectors recorded Scope 1 and 2 reductions, with Utilities, Industrials, and Basic Materials driving progress. Yet Scope 3 rose again, largely due to supply chain activity, highlighting the limits of operational decarbonisation.

Just five companies account for ~95% of Scope 1 and 2 emissions, underscoring a major concentration risk. Siemens Energy, Siemens AG, and Airbus together dominate Scope 3, leaving the index heavily exposed to downstream activity.

For investors, the DAX40 shows both momentum and vulnerability: operational emissions are falling, but concentrated exposures and rising supply chain risks point to significant transition challenges ahead.