Setting a Net-Zero Target
Making sense of greenhouse gas emissions types
5 minute read Investors break down the carbon footprints of portfolio companies by emissions type. For most investors, the bulk of greenhouse gas emissions come from portfolio companies, especially from across companies’ value chains.
Stress testing net-zero transition scenarios
5 minute read The average energy company could lose nearly a third of its total value if policymakers take decisive action to limit global temperature rise to 1.5˚C by midcentury, according to a scenario analysis that illustrates how investors can stress test portfolios for climate risk.
An interactive tool for visualizing net-zero alignment
5 minute read Investors who aim to align their portfolios with net-zero emissions by midcentury may wonder how quickly their investments need to decarbonize to achieve that goal. This interactive tool developed by MSCI’s Climate Risk Center can help.
Using scenario analysis for climate change
5 minute read Investors use scenario analysis to assess future risks and opportunities under conditions of uncertainty. Investors can use such analysis to understand how various combinations of climate-related risks may affect the performance of companies and portfolios over time.
Untangling corporate decarbonization targets
5 minute read Decarbonization targets reflect a company’s commitment to reduce its emissions of greenhouse gases. If the target is net-zero, it means the company aims to first decrease its emissions and then offset the remaining emissions with carbon removal.
Setting interim emissions-reduction targets
5 minute read The target date of many corporate climate targets is nearly 30 years away. Owners and managers of assets, companies and other capital-markets participants are mapping out interim targets for cutting carbon emissions across portfolios.
A checklist for climate-aligned investment portfolios
5 minute read Aligning investment portfolios with global temperature goals encompasses a series of actions. They include measuring the carbon footprint of holdings, analyzing scenarios, identifying opportunities, monitoring alignment. and reporting on progress and outcomes.