Index, Industry and Company Carbon Insights

Across the DAX40, operational emissions (Scope 1 and 2) continued to fall in 2024, but Scope 3 ticked higher on the back of supply chain activity. With a potential carbon liability of up to 71% under the IPCC Net Zero 2050 scenario, the index faces concentrated transition risk. While Utilities, Industrials, and Basic Materials are making visible strides in decarbonisation, the majority of emissions remain concentrated in just a handful of companies, leaving investors exposed as regulatory pressures intensify.

Emissions across the FTSE100 remained flat for Scope 1 and 2 in 2024, but Scope 3 rose slightly, driven by a rebound in Industrials. With a 68% carbon liability under the IPCC Net Zero 2050 scenario, the index faces rising transition risk. While some in hard-to-abate sectors are reducing emissions, others continue to pursue carbon intensive strategies - deepening exposure for investors as climate regulation tightens.

Our new Market Snapshot explores the Hang Seng's emissions trends, revealing some interesting emissions figures. Companies representing just ~10% of market value generate about ~80% of total emissions. While China's current energy approach means near-term emissions growth, their renewable investments suggest a significant pivot around 2030, critical insights for investors navigating Asia's climate transition journey.

Our latest Market Snapshot examines emissions trends across New Zealand’s NZ50 index, where Scope 1 and 2 emissions continue to fall, led by energy firms. Just 17% of the index’s market cap accounts for ~78% of total emissions, highlighting concentrated transition risk. While energy companies show tangible decarbonisation progress, hard-to-abate sectors saw emissions rise, reflecting limited low-carbon alternatives. This snapshot offers essential insights for investors weighing transition exposure in a compact market.

Latest S&P500 analysis reveals Scope 1&2 emissions return to 2021 levels, with utilities and energy sectors driving reductions. Top 10 emitters represent 50.6% of emissions yet only 2.8% of market cap.

China’s largest listed companies are navigating a complex transition landscape, balancing record-breaking renewable growth with a surge in new coal approvals. As regulatory signals shift and emissions trading expands, the SSE 50 provides a unique view into how climate goals and energy security are unfolding on the ground.

Our latest Market Snapshot examines emissions trends across Singapore's STI30 index. It highlights emissions reductions in the utilities sector, including the significant impact of strategic corporate decisions about energy transition. We also see important differences between Singapore and Hong Kong, which are relevant to investors looking to increase exposure to Asian markets.