For climate improvements in an equity portfolio to have impact in the real economy, investors’ decisions to invest in that portfolio need to be consistent with the climate performance and engagement of its investee companies. Investors may engage with companies on climate alignment but must also ensure their broader investment decisions are aligned with this engagement.
While many climate-focused or Paris-aligned investment strategies do display reduced carbon intensity or temperature at the portfolio level, these improvements are not always seen at the company or stock level within it, leading to a portfolio that may have good environmental credentials on the whole, but remains invested in companies who are not environmentally positive.
We’ll show you how to avoid portfolio greenwashing while ensuring your investments align with your broader engagement activities and overall environmental goals.