Paris Alignment

Aftab Ahmed

Data Engineer

.NET

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%

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Posted Mar 21, 2024

Using the Trucost Paris Alignment dataset, investors can track a company’s actual and forecasted carbon intensity

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