A systematic tool to help identify leaders and laggards in the low carbon transition – J.P. Morgan Asset Management

J.P. Morgan Asset Management has developed a Carbon Transition Score that incorporates the key implications of the Paris Agreement.

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The Paris Agreement outlines the actions needed to address the threat of climate change. Important implications for equity and fixed income investors that have a decarbonisation objective for their portfolio are: (i) greenhouse gas (GHG) emissions need to reduce, (ii) decarbonisation rates will vary across the economy, (iii) decarbonisation is complementary to climate adaptation and climate resilience, and (iv) transparency is essential.

J.P. Morgan Asset Management has developed a Carbon Transition Score that incorporates the key implications of the Paris Agreement. This portfolio management tool may identify those companies that are leaders and laggards in the low-carbon transition, compared to their respective sector peer.

The Carbon Transition Score can be used alongside the EU Climate Benchmark regulation to help provide additional information for portfolios that seek to align to the goals of the Paris Agreement.

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