Are Asian Companies More Carbon Efficient Than Their Global Peers?

To compare the carbon efficiency of Asian companies with their global peers, we evaluated the carbon decile ranks of companies in the S&P Global BMI Series for Australia, Hong Kong SAR, Japan, South Korea, China, India, and Taiwan.

Introduction

With the launch of the S&P Global Carbon Efficient Index Series in 2018, S&P DJI introduced the S&P Carbon Global Standard, a proprietary carbon classification system that assigns carbon deciles to companies within their respective industry groups. The framework uses carbon-to-revenue footprint (carbon intensity) for companies in the S&P Global LargeMidCap to determine carbon decile thresholds for each industry group and defines companies’ carbon deciles according to these thresholds.

To compare the carbon efficiency of Asian companies with their global peers, we evaluated the carbon decile ranks of companies in the S&P Global BMI Series1 for Australia, Hong Kong, Japan, South Korea, China, India, and Taiwan. We compared the distribution of companies across high- (1st-3rd), mid- (4th-7th), and low-carbon deciles (8th-10th) within each industry group for each market.

A higher proportion of companies in high- (low-) carbon deciles implies companies in that industry group tended to be more (less) carbon efficient than their global industry group peers.