CDP has released a new dataset gives investors temperature ratings for 4,000 global companies, based on emission reduction targets covering all relevant GHG emissions in a company’s value chain.

Based on an approach developed by CDP and WWF, the ratings can be used for gauging the temperature pathway of investor portfolios, funds and stock indices, with asset manager Amundi being the first to use the rating as part of its ESG analysis.

Emily Kreps, global director capital markets at CDP, said: “Climate science tells us that we must rapidly decarbonise and achieve net-zero GHG emissions by 2050 to avoid the most dangerous effects from climate change. Needing to play their part and drive an economy-wide transition, investors increasingly want to align their portfolios with international climate goals and the economy of the future. By providing a clear, science-based and uniform standard for companies’ ambition, CDP temperature ratings now allow investors to do that by benchmarking, communicating and reducing the temperature of their portfolios and products. Asset managers must be transparent, and it is good to see Europe’s largest asset manager leading the way”.

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