Carbon risks and opportunities in the S&P 500

Carbon risks and opportunities in the S&P 500 a report by TruCost, commissioned by IRRCi, finds the carbon intensity of companies varies widely even within sectors. This has important implications for investors:

* Companies that are less carbon intensive than their sector peers stand to gain competitive advantage from proposed ‘polluter pays’ cap-and-trade regulation.

* Companies that have less carbon intensive supply chains than their sector peers also stand to gain competitive advantage, as suppliers of carbon intensive goods and services attempt to pass on their regulatory costs.

* Companies that are more carbon intensive than their sector peers will find it difficult to pass on their higher regulatory costs and are likely to see profits fall, unless they profoundly change the goods and services they produce or how they produce them.