Browsing by Author "Jonsdottir, Harpa Sif"

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    Reducing the Carbon Footprint of Equity Portfolios
    (2017-07-26) Jonsdottir, Harpa Sif; Palmelind, Sheida; University of Gothenburg/Graduate School; Göteborgs universitet/Graduate School
    This paper investigates the e ect of reducing the carbon footprint of Swedish equity portfolios. In order to decrease CO2e emission of investments, the constituents of the portfolios are re-weighted with regards to their carbon footprint, while minimizing the tracking error against a benchmark portfolio. The study provides insight to whether it is possible to construct portfolios with lower CO2e in a limited investment environment. Our ndings show that we can decrease carbon footprint by 25% without altering the portfolios' sector exposure or su ering loss of returns. The optimization incorporates a recently proposed Swedish national standard for calculating portfolio footprint as well as a calculation of how much an investor contributes to emission when investing 1000 SEK a month for ten years in each of the portfolios.