New climate rating for companies

CPD Amundi Asset Management climate change ESG

8 July 2020
| By Oksana Patron |
image
image
expand image

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.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 4 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

5 days 17 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

4 days 21 hours ago