chinazh
Sustainable Investing Glossary

Paris-aligned benchmarks

Paris-aligned benchmarks are indices whose constituent companies are aligned with the Paris Agreement, which sees to limit the rise in global temperatures to well below 2°C above pre-industrial levels, and to pursue efforts to keep the rise to 1.5°C.

According to the EU this implies the creation of a benchmark “where the underlying assets are selected in such a manner that the resulting benchmark portfolio's [greenhouse gas] emissions are aligned with the long-term global warming target of the Paris Agreement and is also constructed in accordance with the minimum standards laid down in the delegated acts”.

Until 2020, no such benchmark existed for measuring the performance of investment funds against the goals of the Paris Agreement. The EU Benchmarks Regulation responds to this need by defining the Paris-aligned Benchmark. Robeco innovated in this area by working with Solactive to create Paris-aligned Benchmarks for fixed income investing – for corporate credits and aggregate bonds. These are the indices against which the performance of the Robeco Climate Global Fixed Income strategies is measured. 

Climate investing: from urgency to solutions
Climate investing: from urgency to solutions
Read more
The indices are structured along the following principles:
For corporate bonds:
  • A process of year-on-year decarbonization is reflected, equaling at least 7% on average per annum, based on the Scope 1, 2 and 3 emissions. 
  • All industries except fossil fuels are included, and sector weights are kept close to the broader market index.
  • Emissions are normalized by the total capital of issuers, measured in terms of book values.
For sovereign bonds:
  • A process of year-on-year decarbonization is reflected, equaling at least 7% on average per annum. 
  • Decarbonization of the index will be achieved through decarbonization at country level, as well as by adjusting the weights of individual sovereigns to establish a -7% annual trajectory at index level.  
  • Country emissions will be normalized by the population size, measured in terms of CO2 emissions per capita.
Despite these carbon-related constraints, Robeco finds that the index characteristics mimic those of the general market over time. The behavior and yield characteristics of the Paris-aligned indices are very similar to those of their equivalent generic indices, with the important difference being that the Paris-aligned indices have a much lower carbon footprint.
Sustainable Finance Action Plan
Sustainable Finance Action Plan
Overview
透过ESG参与致力改善后疫情时代用工实践
透过ESG参与致力改善后疫情时代用工实践
荷宝最新的参与主题确保劳动者得到充分保护,以及企业对劳工问题承担应有的责任。
12-08-2021 | 市场观点
荷宝CEO参加全球财富管理论坛:完善可持续性战略,支持绿色复苏
荷宝CEO参加全球财富管理论坛:完善可持续性战略,支持绿色复苏
7月24日,荷宝首席执行官Gilbert Van Hassel以视频形式参加了全球财富管理论坛2021北京峰会。
03-08-2021 | 视频
全球拉响生物多样性危机警报!
全球拉响生物多样性危机警报!
6月5日是世界环境日,由联合国设立并旨在促进全球环境意识、提高对环境问题的注意。
17-06-2021 | SI Opener