Understanding The Climate Performance Of Investment Funds
Analysis from Cambridge Institute for Sustainability Leadership found that the present disclosure of fund performance does not allow investors to understand and compare the alignment of funds with the Paris Agreement on climate change.
The report aims to foster familiarity with the temperature score landscape by examining the building blocks of existing methods. It proposes a simple, transparent and scientifically robust method that translates portfolio emissions into a metric expressed in degrees Celsius, to report portfolio alignment with the Paris ambition.
The method aims to answer the question: “What would be the global mean temperature increase at the end of the century if the entire economy had the same emissions intensity as this portfolio?”.