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    Helping clients to align bond portfolios to the Paris climate accord

    Helping clients to align bond portfolios to the Paris climate accord

    13 September 2022 Responsible investment
    Three frameworks to manage carbon emissions in buy-and-maintain corporate bond portfolios

    With investors increasingly being asked to report on the alignment of their portfolios with the Paris Climate Accord, Claire Bews, Integrated Solutions Credit Portfolio Manager, introduces three methods that Insight uses to help clients measure carbon emissions in corporate bond portfolios.

    Questions answered

    • What are the main frameworks to align with the Paris Climate Accord?
    • What are the metrics used in these frameworks?
    • How many of these frameworks should you use to track alignment?
    • How likely is it that current portfolios will achieve a net-zero target by 2050?

    Key lessons

    • Reporting using all three methods can give a fuller picture of alignment
    • Investors should use only one of the frameworks for setting carbon-emission targets
    • With ongoing data improvements, it is important to have an ongoing dialogue with your fund manager about evolving carbon emission targets over time

     

    See the first half of this video series: Managing Carbon Emissions in Buy-and-Maintain Corporate Bond Portfolios

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