Under 1% of $27 trillion global fund assets are paris-aligned
Submitted by hazal.bastimur on November 8, 2021
Analysis of over 16,500 investment funds worth USD $27 trillion has revealed that under 0.5% of the assets are currently aligned with the Paris agreement’s temperature target of ‘well-below 2°C’.
When considering Scope 3 emissions – most commonly the use of a company’s products or emissions in the supply chain – the percentage of funds aligned to the Paris agreement drops from 0.5% to just 0.2%, or just 65 individual funds.
The data from non-profit CDP, shows that the vast majority of global funds assessed – worth over $27 trillion – are currently invested in assets with an expected temperature path of over 2.75°C of global warming.
Overall, just 158 individual funds were assessed at ‘well-below 2°C’, while over 8,000 (62% of assets) were temperature scored at above 2.75°C. 102 funds were temperature rated at 1.5°C, the more ambitious goal of the Paris agreement.
Sabanci University Corporate Governance Forum is the partner of CDP in Turkey since 2010. CDP works to transform the way the world does business to prevent dangerous climate change and protect natural resources. CDP holds the largest collection of globally self-reported corporate climate change, water and forest-risk data. CDP uses the power of measurement and information disclosure to improve the management of environmental risk.