In 2015, 196 world leaders established the Paris Agreement, which commits to limiting global warming to well-below 2°C with efforts to restrict warming to 1.5°C by 2100. To meet this target, regulators and the global economy must reduce or offset the amount of GHG produced through its economic activities. This is ultimately the target of net-zero, the purpose of which is to balance the entire amount of GHG released with the amount removed from the atmosphere by 2050.
This has led to the challenging task of creating an implementation roadmap to reduce global GHG emissions. Global standard-setting bodies have since published guidance on how to make sense of the risks and opportunities associated with climate change. They have sought to help financial institutions better understand how their investment choices and strategy impact the climate, known as ‘portfolio alignment’, with organizations such as the Task Force on Climate-Related Financial Disclosures (TCFD) and the Glasgow Financial Alliance for Net Zero (GFANZ) publishing global guidance on alignment metrics.
Currently under development, ClimateALIGN generates an Implied Temperature Rise (ITR) score as a forward-looking portfolio net-zero alignment metric. It will allow banks, pension funds, insurance companies, asset managers and sovereign wealth funds to measure, manage and monitor net-zero portfolio alignment.
Learn more about the ITR score as a portfolio alignment metric here.
Understand current portfolio performance against net-zero
Integrate net-zero within an investment strategy
Track and disclose ongoing alignment progress
- Methodology from open-source networks (OS-Climate)
- Emissions, targets, and decarbonization pathways sourced from independent providers
- One consistent net-zero scenario used across all alignment and risk-return analytics
- Universal coverage based on disclosed data and 500+ sector-region modeled datapoints
- ITR scores generated at portfolio, asset class, sector, country/region, and security levels
- ITR asset class coverage across listed equity, corporate credit, private assets, sovereign debt, real estate, and alternative assets
- Real-time portfolio analytics
- Ability to request disclosure via built-in engagement functionality