Abstract
The Paris Agreement, signed in 2015, calls for limiting global warming to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increasing by 1.5°C. To achieve this goal, companies need to reduce their greenhouse gas emissions and align their business strategies for a net-zero future. By using the in-house Climate Engine, our investment team can identify companies making progress towards net-zero, and the resulting portfolio can improve the emissions intensity, mitigate transition risks, and capture new opportunities in the investment landscape. The integration of ESG and climate data opens a new era for portfolio management, and the Climate Engine captures this new era with a multi-dimensional portfolio construction methodology.