Weighted Carbon Intensity
FAQs
1. What is the difference between carbon intensity and weighted carbon intensity?
• Carbon intensity usually refers to CO₂ emissions per unit of energy or revenue.
• Weighted carbon intensity adjusts this by considering the proportional size or importance of each source, offering a more realistic average.
2. Why is WCI important?
WCI helps investors, companies, and regulators understand the real emissions profile of mixed assets or energy portfolios, aiding in climate risk assessment and sustainability planning.
3. How is WCI used in ESG reporting?
In ESG metrics, WCI provides a benchmark for how carbon-efficient an investment portfolio or company is. It helps in identifying high-emission contributors and tracking decarbonization efforts.
4. Can WCI change over time?
Yes. As the energy mix or portfolio composition changes (e.g., shifting from coal to renewables), the WCI will reflect these changes.
5. What units is WCI usually measured in?
Common units include:
• kg CO₂/MWh (for energy)
• tCO₂e/£M revenue (for finance)
6. Is a lower WCI better?
Yes. A lower weighted carbon intensity indicates higher carbon efficiency and often reflects a cleaner or more sustainable operation or investment.
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