Carbon-Adjusted Return: A New Metric for Evaluating the Carbon Intensity of Fund Performance

We believe that for those allocating capital to Article 9 funds – vehicles explicitly targeting sustainable investments under the Sustainable Finance Disclosure Regulation (SFDR) – the importance of measuring their carbon footprint is becoming a key element. In this article, we present the Carbon Intensity Adjusted Return, a metric which provides valuable information on what carbon intensity is necessary for a fund to generate its return.

For professional investors only