Aligning Portfolios with the Paris Agreement

Oct 26, 2020

The pressure on institutional investors to act on climate change and demonstrate its influence on their decision-making and portfolio construction continues to grow. Increasingly, the focus is on the alignment of client investment strategies with the decarbonization pathways required to deliver the global 1.5oC increase targeted by the Paris Agreement.

This alignment may be achieved by overweighting companies on a credible path to decarbonization or offering green solutions, while in contrast underweighting those poorly positioned for the transition to a lower-carbon economy and by limiting exposure to the growing physical risks. Investors tackling this investment challenge are now supported by the MSCI Climate Paris Aligned Indexes.