The Portfolio Decarbonisation Strategy

Project background and aims:

Decarbonisation is increasingly becoming a part of investment policies and is impacting both active and passive investment strategies.

Portfolio Decarbonisation covers a variety of strategies and approaches. In this project, we will investigate different carbon management strategies to reduce the S&P Global 1200 index’s carbon footprints, i.e., divestment, purchase of carbon allowances, and purchase of offsets. We will review the performance and costs associated with each strategy. The intention is to provide perspective for the different approaches against multiple criteria, to enable investors to get a more complete understanding of the pros and cons of different decarbonisation strategies at different levels of carbon footprint reduction targets.