Sustainable finance
Portfolio Decarbonization
Reducing the financed emissions or carbon intensity of an investment portfolio over time, aligned with a net zero pathway.
Definition
Portfolio decarbonization is the deliberate reduction of the greenhouse gas emissions associated with an investment portfolio — measured as financed emissions or weighted average carbon intensity — toward a target consistent with a net zero pathway. It can be achieved by engaging with investee companies to cut real-world emissions, tilting toward lower-carbon holdings, or divesting high emitters, with materially different real-economy effects.
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