CHAPTER 14

Climate Transition and Portfolio Alignment

Net zero, temperature scores and transition plans

Opening question

“My fund says it is 'aligned with 1.5 °C'. What does that actually mean?”

In this chapter

What net zero means for countries, companies and investors
How to judge a company's climate target, including science-based targets
Investor net zero commitments and alliances
Portfolio temperature scores, with a worked example
Decarbonisation pathways of 7% a year, with a worked example
Climate transition and Paris-aligned benchmarks
Why portfolio decarbonisation and real-world decarbonisation differ
Transition finance in Asia and Vietnam's path to net zero

🔒

This chapter is in the full book

Chapter 1 is free to read online. The full text of chapter 14 — with its tables, figures, worked examples and practice lab — is available in the complete edition of ESG and Sustainable Investing: From Theory to Practice — Vietnam Readiness (Volume 4, NXW Investment Library).

Read Chapter 1 free Get the full book — [email protected]

Sections of this chapter

14.1 From footprints to alignment

14.2 Net zero: what it means

14.3 Judging a company's climate target

14.4 Investor net zero commitments

14.5 Temperature scores

14.6 Decarbonisation pathways

14.7 Climate transition and Paris-aligned benchmarks

14.8 Portfolio decarbonisation versus real-world decarbonisation

14.9 Transition finance: from brown to green

14.10 Vietnam's transition

← Chapter 13: ESG and Performance: What the Evidence Says Chapter 15: ESG Indexes →