What is Implied Temperature Rise?
Our Implied Temperature Rise (ITR) metric is part of a powerful suite of analytical tools designed to help you build climate-resilient portfolios throughout the investment process. The intuitive, forward-looking metric, expressed in degrees Celsius, is built to show the temperature alignment of companies, portfolios and funds with global temperature goals.
With its coverage of over 12,000 issuers, Implied Temperature Rise supports reporting in line with evolving disclosure requirements.1 Investors can use the metric to set decarbonization targets, support engagement on climate risk and facilitate reporting aligned with the Internatioal Sustainability Standards Board (ISSB) and other industry standards.
How Implied Temperature Rise works
Implied Temperature Rise compares the current and projected GHG emissions of a broad universe of publicly listed companies across all emissions scopes (based on the company’s track record and stated reduction targets) with its share of the remaining global carbon budget for keeping warming this century to well below 1.5°C.
A company projected to emit carbon below budget can be said to “undershoot” the budget; a company projected to exceed the budget “overshoots” it.
The portfolio-level ITR compares the sum of projected GHG emissions against the sum of carbon budgets for the underlying constituents or holdings.
We determine ITR by:
See how we calculate ITR
Source: MSCI ESG Research
Chart your climate pathway
Track progress
See how companies and portfolios align with global climate targets.
Manage risk
Inform climate risk management, set decarbonization targets and optimize portfolios.
Engage
Connect with companies on climate risks and progress; demonstrate how investments align with climate goals.
Report
Adopt best practices on reporting metrics aligned with the ISSB and other global sustainability disclosure standards.
Resources and research
Looking for a demo?Request one now.
Climate Transition Strategies
Use our integrated data, analytics, indexes and research-led insights to identify opportunities, sharpen your view of risk, and find your competitive edge.
Climate Target and Commitments Dataset
Evaluate companies’ climate commitments based on their comprehensiveness, ambition and feasibility.
Scenario Analysis
Quantify the impact of potential developments in the energy transition and physical risk on investment portfolios and loan books.
1 The company-level dataset covers over 12,000 companies based on the MSCI ACWI Investable Market Index, as of September 2024.
2 Adjusting companies’ projected emissions for each scope based on whether the company has published a climate target with a sufficient level of detail to be assessed.