Temperature Scoring - Total assets owned emissions

Tools
1

Hi again to the group!

I have a quick question regarding the “Total assets owned emissions” value that is used in the EOTS aggregation method. What exactly is this value and how is it calculated (formula)?

Thanks in advance for any help! :slightly_smiling_face:

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Hi @DimKap,
You find all the aggregation formulas on page 25 in the method white paper here:

Best,
Donald

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Hi there Donald! Thanks a lot for your response!

I am aware of the aggregation methods used in the Temperature Scoring tool, and I have read the formulas you are refering to. However, inside these formulas there is a variable called “Total assets owned emissions” (in AOTS for example) the formula for which is not mentioned anywhere in the report. There is only a small description in page 26 saying “Total assets owned emissions: Total Assets owned emissions is the sum of portfolio company owned emissions weighted on the total assets of investee companies.”. But how exaclty are these companies weighted according to their emissions/ investments? What is the formula for that?

Hope I was not too confusing. Thanks again!

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Hi there,
You have a point in that the formulas may not be completely explained in the paper. That should be fixed in a future version. Anyway, if we take AOTS as example:

For AOTS we take (investment_value/company_total_assets) * ghgX for each company, and then sum these up to get total assets owned emissions. ghgX is the ghg emissions for the scope in question, ie S12, S3 or S123.

For the other methods that are emissions based (MOTS, EOTS and ECOTS), just replace total assets with market value, enterprise value or EV + Cash, respectitvely.

Hope that is a bit clearer.

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