CarbonSetuEducational SimulationRs 98,560 Virtual

Reduce portfolio emissions

See which stocks create the most carbon risk, then decide what to change.

This tab explains how to lower the carbon footprint of a portfolio. It starts with the biggest polluting holdings, then shows the practical choices: reduce the holding, compare cleaner companies in the same sector, or track the risk over time.

First
Find
Which holdings cause most of the emissions?
Second
Compare
Is there a cleaner company in the same sector?
Third
Change
Reduce, replace, or keep the holding with a reason.
Fourth
Track
Check if portfolio carbon risk actually falls.
01

Start with the stocks causing the most emissions

start here

On the dashboard, sort the holdings by financed emissions. These are the companies making the portfolio carbon-heavy. In most portfolios, cement, power, steel, and oil companies create a large share of the footprint.

ExampleIf NTPC and Tata Steel together create most of the financed emissions, changing small IT or banking holdings will not reduce the footprint much.
  1. Go to Dashboard.
  2. Find the holdings table.
  3. Look for the largest Financed tCO2e values.
  4. Pick the top one or two holdings to study first.

Decarbonization starts with the biggest contributors, not with random holdings.

02

Do not compare a bank with a steel company

fair comparison

A fair comparison is usually within the same sector. If Tata Steel is high-carbon, compare it with other metal companies. If NTPC is high-carbon, compare it with other power companies. This keeps the portfolio logic understandable.

ExampleReplacing a steel company with a bank may reduce emissions, but it also changes the portfolio's sector exposure. A same-sector comparison is easier to explain.
  1. Identify the sector of the high-emission holding.
  2. Find companies in the same or similar sector.
  3. Compare emissions, business risk, and policy exposure.
  4. Only then decide whether a swap makes sense.

A cleaner portfolio should still make financial sense.

03

Put a rupee cost on emissions

simple example

Carbon price means: what if every tonne of emissions had to be paid for? The site applies a rupees-per-tonne scenario so visitors can see how emissions may become a future financial cost.

ExampleIf a holding is linked to 5 tonnes and the scenario price is Rs 2,600 per tonne, the possible carbon cost is Rs 13,000.
  1. Look at Possible carbon cost on Dashboard.
  2. Compare it with portfolio value.
  3. Ask whether high-carbon holdings also face CBAM or regulatory exposure.

Carbon pricing turns emissions into a number investors can understand: possible rupee cost.

04

Do not blindly sell just because one number is high

A company can have high emissions but also be important to the economy or have a strong transition plan. Use the dashboard as a decision aid, not as an automatic buy/sell signal.

ExampleA renewable company may still have some emissions, while a steel company may be investing in cleaner technology. The context matters.
  1. Check emissions.
  2. Check sector and policy exposure.
  3. Check whether the company has a credible transition plan.
  4. Write a short reason for keeping, reducing, or replacing it.

The goal is better understanding, not automatic trading.