A complete picture of the effects of carbon pricing.
With CarbonAlpha, forecast the effect of carbon pricing on the costs and revenues of 40,000 private and public companies worldwide.
Based on carbon market regulation
A granular model of carbon price exposure.
CarbonAlpha has been engineered around specific carbon market regulation and data to provide a more realistic output that complements existing climate risk models.
Goes beyond value-at-risk calculations to include: Policy expansion, Expanding Scope, Hedging Strategies
Designed to create more realistic findings for portfolio managers
Can be used to refine investment strategies and generate outperformance
Can be used to protect investments against unfavourable carbon price scenarios
A tool to generate Alpha
Which stocks thrive in a high carbon price future?
Learn which stocks thrive (or struggle) as the carbon price changes over time. Portfolio managers who are seeking to generate Alpha can use CarbonAlpha to weight their portfolio holdings according to their carbon price sensitivity in different scenarios.
Forecast sensitivity of company earnings to a changing carbon price
Analyse specific companies or at the sector-level
Easily compare multiple carbon price scenarios
Harness carbon as a source of Alpha generation
Prepare for the opportunities presented by a high carbon price future
Case Study
Carbon Pricing impacts corporates globally
"In a nutshell what we see from SparkChange's data is the emissions a company needs to pay for both directly and indirectly and what they handle through their risk management. We are then left with what I would call a 'residual carbon risk', or an estimate of how many tonnes the company needs to cover each year going forward. This is the component that we are bringing into the portfolio."
Stian Fjellstad
Investment Analyst, Gjensidige
A tool to hedge risk
Learn to manage carbon price shocks.
Carbon pricing could reduce the market capitalisation of some of the world’s largest companies by 3-60%.[1] This vast range of estimated market cap reductions emphasises the high level of uncertainty around carbon price risks.CarbonAlpha is designed to help investors quantify the near- and long-term materiality of carbon price risk within their portfolios and gain insight to hedge their carbon price exposure per regional carbon market.
1 The Economist (2020), Costs of carbon
Why Carbon Alpha
Harness the power of
granularity
Delivers
valuable insights
Broad scope granularity delivers unique insights & predictions to improve portfolios
Complements
existing strategies
Complements existing climate risk models, easy to get started
Innovation for
your customers
Delivers high level of innovation for your company and customers
Engineered by carbon market experts
Gain valuable insights on
40,000+ companies worldwide
Realistic modelling
Built by carbon markets experts using specific carbon market regulation and data.
40,000+ companies
Comprehensive universe comprising 700+ additional datapoints per company
Analyse net change
Shows the positive or negative effect of carbon pricing on EBITDA, short-term and long-term
Zoom level
Run sensitivity analysis on selected companies or zoom out to see an entire portfolio
20+ scenarios
Analyse the effect of carbon pricing across a wide range of pre-built scenarios.
Fully customisable
Add your own forecasts and data inputs.
Multi-region analysis
Covers differences in regional carbon markets and their regulatory regimes.
Cost pass-through
Reveals what % of a company’s carbon costs can be passed to their customers.
Designed for professional investors
Downloadable data and easy-to-integrate API.
Data exporting
Intuitively designed to ensure information is shareable and within easy reach, with 1-click downloadable Microsoft Excel data files.
API connectivity
Businesses can seamlessly integrate our analytics into their workflows. We offer expert technical support and documentation to aid integration.
Interested to learn more?
Would you like to quantify the materiality of carbon price risk on your portfolio? Contact us to arrange a CarbonAlpha demo.