Nabeel Abdoula on Climate Change and the use of Implied
Temperature Rise metrics.
COP26 saw an even greater focus from many countries across the world to actively tackle Climate Change. From an investment point of view, one of the debates that repeatedly comes up in relation to this is reducing the carbon footprint in your portfolio. This invariably means using backward-looking metrics but more recently, the use of forward-looking metrics such as Implied Temperature Rise (ITR) has been increasing.
Nabeel Abdoula, Deputy Chief Investment Officer, answers questions around the theme of Implied Temperature Rise Metric (ITR) and how it might be a better solution to creating a climate-aligned portfolio rather than relying on historic carbon emissions data. We investigate and discuss whether we should be using historic data at all, the role of a science-based approach in setting our investment strategies and key developments over the last 18 months around the appropriateness of data.