Climate Aligned Investment Strategy and its Benefits

The climate aligned investment strategy integrates the fight against global warming into the investment process. European companies with decarbonization strategies aligned with the Paris Agreement are selected for the portfolio using an in-house climate alignment assessment methodology. The strategy requires companies to disclose carbon emissions and have emission reduction targets. Companies must align with decarbonization pathways defined by institutions, such as the International Energy Agency, or meet requirements set by the United Nations. The portfolio's carbon footprint must be at least 50% below the benchmark, and efforts are made to reduce carbon intensity yearly. The strategy also incorporates strong ESG practices, excluding companies with poor performances or controversial activities. Investing in a portfolio aligned with the Paris Agreement offers opportunities to support climate-friendly companies, identify future risks, exploit long-term climate change opportunities, and leverage regulatory and policymaker support.