Asset managers issue climate pledges
In recent years, many asset managers have committed to reducing the CO2 footprint of their portfolios. For example, if you want to keep your portfolio on a 1.5-degree path, you currently have to reduce the CO2 footprint of your portfolio by around eight percent per year. If all companies were to align their eco-nomic activity with this target, the world as a whole would also be on a 1.5-degree path and the footprint of each portfolio would auto-matically follow this path.
However, as this is not the case, it may also appear sensible and expedient for an investor who is indirectly responsible for emissions with his invest-ments in bonds and equities to trim his port-folio to a 1.5-degree path by reallocating. This is because the investor then indirectly financ-es the companies that are compatible with this desired path.