Improving Portfolio Alignment and Financed Emissions Metrics

  • Financial institutions are being given substantial leeway on how to define their alignment with national Net Zero emissions targets
  • This presents a loophole that could enable greenwashing unless more clarity is required on what makes for a credible Net Zero target or disclosure
  • Portfolio alignment metrics, the subject of a report from GFANZ, are particularly challenging because different metrics are better suited to different circumstances, they often rely on estimates of emissions, and they take different types of transition planning into account
  1. Translating scenario-based carbon budgets into benchmarks
  2. Assessing counterparty-level alignment
  3. Assessing portfolio-level alignment.

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Blake Goud

Blake Goud

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Promoting adoption of responsible finance in Islamic markets & Islamic finance. CEO @RFIFoundation.