Responsible Investment and GHG-Emission Accounting in Direct Commodity Investments
Commodities are integral to global economic activity and many investment portfolios. As investors become more focused on understanding the risks and potential impacts of commodities, there is an increasing emphasis on how commodity instruments fit into greenhouse gas (GHG) emission accounting frameworks and their broader sustainability implications. This paper bridges the gap in understanding the responsible investment considerations surrounding commodities, offering a comprehensive overview of key factors that investors should consider.
While we conclude that commodity derivatives should not be included in GHG-emission accounting, investors can still seek meaningful impact by engaging with exchanges and supporting sustainability initiatives within commodity markets.
