The Leaders and Laggards model takes in six indicators and scores for each holding in your portfolio and classifies them as "LEADER", "ALLY", "UNDER PERFORMER", or "LAGGARD". The result is a color-scaled pie chart indicating the portfolio percentage in those four categories.

What Defines a Leader?

Lowest Combined Scope 1 and 2 Carbon Emissions Intensity
Lowest Scope 3 Carbon Emissions Intensity
Complete Set of Reported Data All Scopes
Highest Percent Renewable Energy Produced
Highest Percent Renewable Energy Purchased
Climate Solution Company

The greater the weight of the holdings in your portfolio that meet these criteria, the bigger the LEADERS segment of the portfolio will be.

Scoring:

The following is the methodology used to score companies across the six indicators and the distribution of scores for each indicator.

1. Scope 1 and 2 Carbon Emissions Intensity

Distribution of Scope 1 and 2 Carbon Emissions Scores:

2. Scope 3 Carbon Emissions Intensity

Distribution of Scope 3 Carbon Emissions Scores:

3. Carbon Emissions Reporting

Distribution of Carbon Emissions Reporting Scores:

4. Percent Renewable Energy Produced

No modeled data were used in these calculations.

Distribution of Percent Renewable Energy Produced Scores:

The ~48k companies scoring 0 in this category are not shown in this distribution.

5. Percent Renewable Energy Purchased

No modeled data were used in these calculations.

Distribution of Percent Renewable Energy Purchased Scores:

The ~48k companies scoring 0 in this category are not shown in this distribution.

6. Carbon Solutions

If a company is designated as a Carbon Solutions company, it has more than 50% of its revenue in a market segment that will be important to the carbon transition economy. A full list of the Carbon Solutions companies can be filtered by Positive Badges in the Research Center.