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Have you ever been curious about how public asset managers are trying to figure out implementing Net Zero across portfolios? Bunch of approaches all with their own nuances and pros/cons. GFANZ portfolio alignment released updated guidance - 140 pages. Here are some highlights.🧵
4 categories of alignment metrics: In increasing complexity, they are 1) binary, 2) maturity scale alignment, 3) benchmark divergence, & 4) implied temperature rise (ITR)
Metrics should be simple, transparent, science-based, broadly applicable, aggregable, and incentive optimal
Metrics should be simple, transparent, science-based, broadly applicable, aggregable, and incentive optimal
Each of these has their own merits and nuances and none of them are perfect in isolation. Unless you have unlimited resource/time, you're likely opting for 1-2 of these approaches.
A drawback of these metrics is that there may be differing data sources and definitions used.
A drawback of these metrics is that there may be differing data sources and definitions used.
