Assessing alignment with the targeted decarbonization pathway is a crucial step for investors to ensure that they deliver on their net-zero commitments. Discover more.
Investors committed to supporting the goal of achieving net-zero greenhouse gas emissions by 2050 or sooner should take a holistic view. Setting targets and milestones to ensure alignment and track progress is a crucial step for every investor who is willing to define a net-zero investment framework. These investors are likely already considering a range of carbon metrics and should be aware of their limitations. Moreover, we believe that assessing alignment is of equal importance to setting targets. In this article, we describe the methods and tools available to investors for measuring carbon emissions and setting targets, and address some key considerations for investors that are willing to make meaningful portfolio decarbonization assessments. Assessing alignment with the targeted decarbonization pathway is a crucial step for investors to ensure that they deliver on their net-zero commitments. However, it may not be sufficient to steer investment portfolios towards net-zero by 2050 and achieve real-world change. We believe that investors should not only consider carbon metrics, but also apply forward-looking elements to align their portfolios with the goals of the Paris Agreement.
