Net-zero alignment chart
The 2015 Paris Agreement bound the world’s nations to limit climate change to an average temperature rise of well below 2°C by 2100, and preferably to no more than 1.5°C. Meeting that goal means decarbonizing the global economy. In this series, MSCI ESG Research explores the key role investors play in this process and various approaches to help investors reach net-zero emissions.
MSCI Net-Zero Investment Framework
The purpose of this series of papers is to provide insights that may support investors in building their net-zero alignment strategy and its implementation. Given the size and nature of the challenge, this requires implementing a net-zero framework that covers all relevant areas of the asset management value chain.
NZ Alignment intro
Net-Zero Alignment: Objectives and Strategic Approaches for Investors
In this first paper of a four-part series, MSCI ESG Research investigates three common approaches to net-zero investing to see whether they can have a real impact on decarbonizing the economy. We also examined a fourth option, policy advocacy, which may affect the market as a whole.
Net-Zero Alignment: Portfolio Construction Approaches for Investors
Post-COP26, the need to reach net-zero is more compelling than ever. How can investors approach a net-zero pathway in their global equities portfolio? We explore three portfolio-construction approaches that target reductions in carbon emissions over time.
Net-Zero Alignment: Managing Portfolio Risk Along the Net-Zero Journey
In the third paper in our Net-Zero Alignment series, MSCI ESG Research examines the challenges investors face when looking to measure and manage climate risk in their portfolios, while meeting the imperative of reaching net-zero emissions.
Net-Zero Alignment: Engaging with Companies
A common thread throughout our net-zero investment framework series is that engagement, in tandem with capital allocation, is a key lever for institutional investors who wish to pursue net-zero targets. This fourth and final paper is intended to provide investors with a practical and comprehensive overview of how to effectively integrate engagement into a net-zero investment strategy.