Finance

Emissions Data Isn't Good Enough for Investors, Quant Study Shows

Money managers trying to pick winners in a carbon-constrained world can't make sound decisions, according to Research Affiliates

Photographer: Anthony Wallace/AFP via Getty Images

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The quality of corporate emissions data available from third party services is too poor to make sound investment judgements, according to a new study by asset manager Research Affiliates.

Investors are trying to pick companies that will perform well in a carbon-constrained world, which requires knowing a company’s emissions, its future projections, and comparing that to its peers. But that information is often either unavailable or unreliable, says Vitali Kalesnik, the quant firm’s head of research in Europe.