Using the Trucost Paris Alignment dataset, investors can track
a company’s actual and forecasted carbon intensity and how
this intensity needs to be reduced by 2025 to meet the Paris
Agreement Goal (to keep global temperature rise well below 2°C).
• Investors can calculate whether a company’s actual and
forecasted carbon intensity is aligning/not aligning with the
Paris Agreement Goal. Within the S&P 500®, equities with the
highest alignment (Quantile 1) outperform those with the lowest
(Quantile 2) by +1.04% on average annually.
• Constructing a Paris Agreement Goal portfolio from the S&P 500
results in an active return over the time period of +11% and an
average carbon footprint reduction of 39%
