ONE. SF : Carbon
Description of methodology and definitions
Introduction
ONE. SF will generate "Sustainability Reports" which discloses the carbon impact of our investments. With carbon impact, we refer to GHG emissions from our investments measured by metric tons CO2 equivalents. We aim to publicly disclose our financed emissions, in line with our commitment to various frameworks such as the Dutch Climate Accord. The descriptions below outline the methodology and definitions that are used for producing the carbon impact figures.
Scope
The scope of our carbon reports are all ONE. SF funds, but not including segregated client mandates (where applicable). The reports we aim to generate covers listed corporate equity, corporate bonds and our investee projects. Government bonds are not in scope as their footprint methodology is not yet well-established for financial accounting purposes. Green bonds are also not included (as yet) in any aggregate footprint calculation, because current accounting methods capture the footprint of the issuer rather than the bond. We report scope 1 and 2 only, since scope 3 is prone to too many data challenges at this stage.
Carbon metrics
We will be calculating three different carbon metrics that cover the PCAF method (“carbon footprint”), the TCFD method (“carbon intensity”) as well as the total carbon emissions attributable to our investments.
Description of methodology and definitions
Introduction
ONE. SF will generate "Sustainability Reports" which discloses the carbon impact of our investments. With carbon impact, we refer to GHG emissions from our investments measured by metric tons CO2 equivalents. We aim to publicly disclose our financed emissions, in line with our commitment to various frameworks such as the Dutch Climate Accord. The descriptions below outline the methodology and definitions that are used for producing the carbon impact figures.
Scope
The scope of our carbon reports are all ONE. SF funds, but not including segregated client mandates (where applicable). The reports we aim to generate covers listed corporate equity, corporate bonds and our investee projects. Government bonds are not in scope as their footprint methodology is not yet well-established for financial accounting purposes. Green bonds are also not included (as yet) in any aggregate footprint calculation, because current accounting methods capture the footprint of the issuer rather than the bond. We report scope 1 and 2 only, since scope 3 is prone to too many data challenges at this stage.
Carbon metrics
We will be calculating three different carbon metrics that cover the PCAF method (“carbon footprint”), the TCFD method (“carbon intensity”) as well as the total carbon emissions attributable to our investments.
Data sources
The carbon emissions data per 2021 fiscal year-end is sourced from various credible resources, included but not limited to the following third parties:
– The S&P Global Corporate Sustainability Assessment 2020
– Carbon Disclosure Project (CDP)
– Company reports (annual and sustainability reports)
ONE. SF sources EV and revenue data from third party data provider Worldscope. All information about account data comes from PUMA.
Data quality and coverage
When reported carbon values are unavailable or inconsistent, estimated carbon values are used. The estimations are based on regressions of scope 1+2 emissions as a function of revenues, done per peer group. Of the 11’692 companies covered in the total universe, around 22% are based on reported numbers, with the remaining 78% estimated. About 8% of the expected source data will most likely be rejected and corrected (7%) or estimated (1%) due to inconsistencies or obvious errors (e.g. wrong units).
Given all out-of-scope exclusions, we can conceivably calculate the coverage on which the reports' footprint measures are based. Aggregation of all funds that are in-scope will give us the In-scope AUM. This is the base on which the coverage is to be calculated.
The carbon emissions data per 2021 fiscal year-end is sourced from various credible resources, included but not limited to the following third parties:
– The S&P Global Corporate Sustainability Assessment 2020
– Carbon Disclosure Project (CDP)
– Company reports (annual and sustainability reports)
ONE. SF sources EV and revenue data from third party data provider Worldscope. All information about account data comes from PUMA.
Data quality and coverage
When reported carbon values are unavailable or inconsistent, estimated carbon values are used. The estimations are based on regressions of scope 1+2 emissions as a function of revenues, done per peer group. Of the 11’692 companies covered in the total universe, around 22% are based on reported numbers, with the remaining 78% estimated. About 8% of the expected source data will most likely be rejected and corrected (7%) or estimated (1%) due to inconsistencies or obvious errors (e.g. wrong units).
Given all out-of-scope exclusions, we can conceivably calculate the coverage on which the reports' footprint measures are based. Aggregation of all funds that are in-scope will give us the In-scope AUM. This is the base on which the coverage is to be calculated.
