The 2015 Paris Conference on Climate Change culminated in the first binding international agreement on global warming and set the stage for one of humanity’s historic challenges.
By providing for the limiting of global warming to “well below 2°C above pre-industrial levels” and to “pursue efforts to limit the increase in temperatures to 1.5°C”, the Paris Agreement committed 195 countries to radical and meaningful change in emissions and climate policy.
Make no mistake: achieving these targets will be a challenge. Yet investors have power to effect change. Huge initiatives have already begun: the Net Zero Asset Owner Alliance, representing $5.1trn in assets, explicitly aims to align portfolios with that more ambitious 1.5°C target. As investors, we can help by shifting trillions of dollars of private capital towards low carbon investments. History may judge us harshly if we don’t.
Make it happen
In our new guide to climate investing, you’ll discover more about the Paris Agreement’s targets and how policymakers, regulators, scientists and expert indexers have come together to provide ways for us all to start meeting the challenges.
We also dig deeper into new Climate Transition Benchmarks (CTB) and Paris-Aligned Benchmarks (PAB) and all the ETFs which use them to help finance the transition to a 1.5°C future.
Achieving the goals of the Paris Agreement is no simple task. But if we all put our hearts and minds into it from today onwards, we could help to limit global warming. Each of us really does have the power to change the world—starting with our investments.
Take the first step by reading our digital investor handbook for low-carbon portfolios.
What’s inside?
- Climate change & the role of investors
- Paris climate targets: why 1.5°C is the goal
- The rise of the ‘net zero’ investor
- Why existing portfolios imply 4-6°C warming
- Regulation & disclosure
- Timeline of key regulatory and disclosure requirements
- The most important climate policy developments
- How to understand the ‘data framework’ for climate
- Temperature & targets
- Temperature as the new shared language of climate investing
- Case studies: four companies using Science Based Targets today
- Effects of temperature on ‘high impact’ industries
- Comparing climate indices
- How to understand climate benchmark indices
- Full overview of the climate index market in 2020
- Comparing methodologies: pros and cons
- Shareholder voting
- Trends in shareholder engagement on climate
- How voting & engagement habits are changing
- The ‘active voice’ of passive managers
- Time to take action
- ‘E’ for the elephant in the room
- Climate – the trade of the decade?
- ETFs as the highway to transition
Read the full handbook
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