New climate rating for companies
Global non-profit organisation CPD has launched a set of climate ratings for measuring and communicating the global warming path and investments which will be used by Amundi Asset Management.
The CDP temperature ratings dataset would provide a temperature pathway for over 4,000 global companies, based on emission reduction targets covering all relevant greenhouse gas emissions in a company’s value chain and, according to asset manager Amundi, this data would be key for investors to better manage climate transition risk.
The manager said it would be the first to use CDP’s temperature ratings to grow its environmental, social, governance (ESG) research capabilities and measure the temperature of its investment universe.
Emily Kreps, global director capital markets at CDP, said climate science meant that we would need to rapidly decarbonise and achieve net zero GHG emissions by 2050 to avoid the most dangerous effects from climate change.
“By providing a clear, science-based and uniform standard for companies’ ambition, CDP temperature ratings now allow investors to do that by benchmarking, communicating and reducing the temperature of their portfolios and products,” she said.
“Asset managers must be transparent, and it is good to see Europe’s largest asset manager leading the way.”
CDP’s temperature ratings would build on a forthcoming protocol developed by CDP and WWF to translate companies’ emissions targets into temperatures and the ratings would reflect the global warming likely to occur if global greenhouse gas emissions were reduced at the same speed as the selected company’s emissions, based on its stated target ambition.
AUTHOR
Oksana Patron
Recommended for you
State Street has rebranded its State Street Global Advisors arm, which has US$4.6 trillion in assets under management, following a series of deals with financial services firms in recent months.
Northern Trust Asset Management has appointed a new head of international and responsible investing.
More than 20 winners have been revealed for the annual Fund Manager of the Year Awards.
Regal Partners has announced its latest alternatives acquisition, taking a 50 per cent stake in real estate and advisory platform Ark Capital Partners ahead of a future hotel strategy launch.
