Defined as a <10-year objective for allocation capital to climate solutions.
The guidance sets out a four-step approach:
- Solutions classification: Identify and classify activities, products and services that contribute to emissions reductions using net zero pathways and/or local taxonomies.
- Contribution type: Assess the type of contribution those activities make to decarbonisation (e.g. transitioning or enabling activities).
- Corporate indicators: Assess contribution of a corporate using revenue and capex data.
- Portfolio/fund metrics: Aggregate corporate green activity up to portfolio or fund level.
Our supplementary climate solutions guidance can help investors identify, classify and measure allocation within listed equity and corporate fixed income, with the topic fast evolving. We do not offer recommendations on allocation or threshold levels.
