Some of the aims of the Paris Agreement are to:
Our data provider ISS Oekom observes companies' expected emissions. ISS Oekom uses an SDS-based methodology to assess whether your investment portfolio is in line with the Paris Agreement. The expected future emissions are calculated for each company with a specific focus on the company's sustainability strategy and the sectors in which it operates.
Your reports will show you the following infographic.
Axis 1 shows the years. You can see this year at the very top. The lower down we go, the more we move into the future.
Axis 2 shows the amount of tCO2e (see our explanation of CO2 emissions).
The green bar is the expected emissions from the companies in your portfolio in the coming years as determined by ISS Oekom.
The yellow slider shows your portfolio's emissions budget each year. This budget is determined per sector based on the quantity that can be emitted within the SDS conditions. This is also calculated by ISS Oekom. Under the Paris Agreement, it will become harder and harder to achieve the targets. That is why you see the slider moving further and further to the left in the future.
We can use these two elements to see whether your portfolio is in line with the Paris Agreement SDS. We assume the portfolio's composition remains the same and the companies will implement the reported sustainability strategies.