Compute portfolio carbon footprint and carbon intensity tilt relative to benchmark. Optimize for carbon reduction subject to tracking error constraint using carbon tilt as a linear factor.
Compute portfolio carbon footprint and carbon intensity tilt relative to benchmark. Optimize for carbon reduction subject to tracking error constraint using carbon tilt as a linear factor
Each component has a specific meaning:
Note: Interpret the impact carbon tilt result against the thresholds and context described above.
Enter the carbon tilt as a linear factor for the scenario you are assessing. Compute portfolio carbon footprint and carbon intensity tilt relative to benchmark. Optimize for carbon reduction subject to tracking error constraint using carbon tilt as a linear factor. Use the impact carbon tilt result to inform your calculation.