Calculator
Example holdings data
These sample rows match the CSV template and the default form seed.
| Asset | Weight | Sector | Region | Emissions intensity (tCO2e/$M) |
|---|---|---|---|---|
| Alpha Energy Co | 0.20 | Energy | North America | 1100 |
| Beta Utilities | 0.15 | Utilities | Europe | 520 |
| Gamma Industrials | 0.25 | Industrials | Asia Pacific | 210 |
| Delta Tech | 0.25 | Information Technology | North America | 35 |
| Epsilon Consumer | 0.15 | Consumer Staples | Latin America | 140 |
Formula used
This tool uses a transparent, simplified scoring approach for education and screening.
1) Intensity ratio
Each holding is compared to its sector benchmark.
2) Temperature score (stylized)
Temperature increases with emissions intensity, adjusted for alignment, horizon, and region.
temp = clamp(tempBase × alignment × horizon × physicalAdj, 1.0, 5.0)
3) Risk scores (0–100)
Transition risk grows with ratio; physical risk uses a region multiplier.
physical = clamp(10 + 75 × ((regionFactor − 0.75) / 0.60), 0, 100)
combined = 0.62 × transition + 0.38 × physical
4) Portfolio rollups
Portfolio temperature is a weight-average of holding scores.
How to use this calculator
- Choose a heatmap metric (temperature, intensity, or risk).
- Set alignment and horizon to match your reporting view.
- Enter holdings with weights or amounts and emissions intensity.
- Optionally adjust sector benchmarks and region multipliers.
- Press Calculate heatmap to view results above the form.
- Use Download CSV or Download PDF for exports.
Portfolio heatmap value for investment teams
This calculator converts holding‑level climate indicators into a sector × region view that highlights concentration risk. It estimates an implied temperature score (1.0–5.0°C) and risk indices (0–100) so analysts can compare exposures across portfolios, mandates, or sleeves. Use it to identify where rebalancing, engagement, or data improvement efforts can deliver the biggest reduction in portfolio temperature and combined climate risk. It is best for screening and prioritization, not final valuation decisions.
Inputs that drive climate hotspots
Each holding needs a name, weight (or amount), sector, region, and emissions intensity (tCO2e per $M revenue). The tool compares intensity to a sector benchmark to create an intensity ratio. Higher ratios increase transition risk and temperature scores. Region multipliers influence physical risk and slightly adjust temperature, reflecting differing exposure to heat, flooding, drought, and storms. Alignment and horizon settings provide a simple forward‑looking stress view.
Benchmarks, normalization, and sensitivity controls
Default sector benchmarks include Energy 900 and Utilities 650 tCO2e/$M, with lower levels such as Information Technology 55. You can replace any benchmark with your preferred dataset to match industry classifications. Auto‑normalize converts raw weights or amounts into a consistent 100% basis, ensuring portfolio rollups and heatmap cell weights remain comparable across submissions, and peer comparisons later.
Interpreting cells, bands, and contributors
The heatmap shows a weighted average metric inside each sector‑region cell, plus the cell’s portfolio weight share. For temperature, Low is ≤2.0°C, Medium is ≤3.0°C, and High is >3.0°C; for risk metrics, bands shift to 35 and 65. The Top Contributors list ranks holdings by weight × temperature to surface outsized drivers even when their intensity is moderate. Empty cells display a dash, indicating no mapped exposure.
Reporting outputs and governance workflow
Exported CSV files capture the full asset table, portfolio summary, and heatmap cells for audit trails and model review. The PDF provides a compact summary for committee packs, client reporting, or internal controls. Combine outputs with a data log describing source intensity values, benchmark choices, and any overrides so repeat runs remain traceable and consistent with ESG policy.
FAQs
It is a simplified implied temperature alignment indicator derived from emissions intensity versus a sector benchmark, adjusted by alignment, horizon, and region multipliers. It helps compare holdings consistently, but it is not a forecast of global temperature outcomes.
Use a consistent source across holdings, ideally the same scope boundary and revenue definition. If intensity is unavailable, use a sector proxy and document it. Update values periodically so trends reflect improvements, divestments, or corporate actions.
If auto-normalize is enabled, the calculator scales all entered weights or amounts to a 100% basis internally. If it is disabled, results use your raw totals and will still compute averages by converting to proportional weights for rollups.
Yes. Open Advanced settings and tick custom sector benchmarks. Enter values that match your taxonomy and data provider, then recalculate. Benchmarks strongly influence ratios and transition risk, so align them with your reporting standard and version them.
For each sector and region, the tool computes a weighted average of the selected metric using the holdings mapped to that cell. The displayed weight is the cell’s share of the portfolio after normalization, enabling quick concentration checks.
CSV exports include the portfolio summary, full holding table, and all heatmap cells so you can audit calculations and build charts. The PDF is a one‑page snapshot with key portfolio metrics and top contributors for quick review.