J O Hambro Capital Management launched a new greenhouse gas emissions forecasting tool to help the alignment of corporate emissions to a low-carbon future.
The new tool, Horizon, was developed in partnership with the University of Exeter’s Global Systems Institute.
It provides probabilistic forecasts of scope 1 and 2 GHG emissions at a company and portfolio level by using reported emissions and data on exogenous factors to create a behavioural model of a company’s emissions profile.
J O Hambro said an evidence-based modelling tool will provide detailed insights aimed at understanding real-world implications of moving towards a low-carbon future.
The enhanced visibility will be used to support its investment teams in understanding the probable impact of future carbon taxes on company valuations as well as identifying climate engagements.
The insights will also form the backbone of the firm’s forthcoming Task Force on Climate-Related Financial Disclosures reporting, which clients will be able to access to gain a better understanding of underlying exposures within their own portfolios.
Andrew Parry, head of investments at J O Hambro and its sustainable systems investing boutique Regnan, said, “We have worked to develop this tool over the last 12 months that we feel is a truly groundbreaking development that will help our investors and clients make better decisions in the route to a low-carbon future.”
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