Transition finance

An investment strategy designed to track a Paris-aligned benchmark must, by EU regulation, reduce average emissions by at least 7% annually.* That means today, only about one-third (32%) of the original global investment universe of global companies are eligible to be included in such a strategy; and for emerging markets, only 28%. While a higher proportion of companies in Europe (62%) meet the eligibility criteria than in other regions, companies excluded continue to emit at a high rate.

* “Commission Delegated Regulation (EU) 2020/1818,” July 17, 2020