Carbon Diagnostics by Emmi

Core Features

Carbon Diagnostics applies a top-down, machine-learning methodology that blends reported and modelled emissions, then overlays carbon pricing and climate scenarios to quantify portfolio-level transition and physical risk. It gives investors a comparable view of financed emissions and climate exposure across securities, sectors and asset classes. From this foundation, several capabilities stand out:

• Financed-emissions coverage – Holdings-level Scopes 1-3 emissions, carbon intensity indicators (e.g. WACI, EVIC) and financed-emissions metrics across all major public and many private asset classes.

• Scenario-aligned risk metrics – Temperature alignment, required emissions reductions and potential carbon liability calculated under multiple IPCC and NGFS scenarios, supporting target-setting and risk analysis.

• Reported + modelled emissions blend – Integration of reported emissions data for equities and fixed income with Emmi’s estimates, plus quality checks, to improve accuracy and PCAF scoring for high emitters.

• Carbon-credits extension – An optional module that incorporates carbon-credit positions into portfolio analysis, showing how credits can hedge liabilities or adjust an emissions footprint.

• FactSet and data-feed integration – Native availability inside the FactSet Workstation and via standard data feeds, enabling users to embed climate metrics in existing risk and reporting workflows.

• Multi-asset portfolio analytics – Infrastructure for analysing multi-asset portfolios with automated processing and a dedicated UI, supporting both top-down portfolio views and bottom-up analysis of high-impact holdings.

Closing Insights

Carbon Diagnostics grew out of Emmi’s effort to turn a carbon-efficiency rating concept into a full climate-finance product suite, backed by several years of work by investment professionals and climate scientists. Founded in 2018 and headquartered in Australia, Emmi was created by climate-finance specialists including Michael Lebbon and Ben McNeil, with the aim of quantifying how carbon risk affects portfolio value and capital allocation. This background helps explain the software’s focus on linking emissions, carbon prices and scenarios to financial exposure, rather than treating climate metrics as a separate ESG overlay.

Carbon Diagnostics is used by investors such as Apostle Funds Management, Spirit Super and Alecta to strengthen net-zero strategies, understand shifts in financed emissions and evaluate portfolios under multiple climate and policy scenarios. Its reach has expanded through FactSet Carbon Diagnostics Powered by Emmi, which brings the dataset into mainstream portfolio and risk workflows. Recent enhancements include reported-emissions integration and regular data updates, aimed at supporting both regulatory climate reporting and investment decision processes.

Prospective users may consider Carbon Diagnostics if they need financed-emissions, scenario and carbon-pricing metrics delivered through familiar tools such as the FactSet Workstation or data feeds, supported by Emmi’s climate and finance specialists for implementation and interpretation.