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Paris (mis) aligned benchmarks – Osmosis Investment Management

The unintended consequences of Paris aligned benchmarks.

Posted on May 30, 2023

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... For institutional investors with decarbonisation targets, tracking an index that follows the EU’s Paris Aligned Benchmark (PAB) rules can provide a practical solution. It relieves investors of some of the burdens of interpreting and implementing the Paris-aligned guidelines themselves and requires no extra monitoring of portfolio managers. But are they the best way of reaching a 1.5°C outcome?

In this piece, Osmosis Investment Management argue that they are not. In fact, far from facilitating the pathway to Paris, PABs could actually be acting as an obstacle to an all-economy transition.

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