Climate change is the greatest challenge we face this century. Increasing emissions since pre-industrial times have led to a sharp rise in global temperatures. Left unchecked, this warming will lead to dangerous disruption to our global ecosystems. In 2015, world leaders signed the Paris Agreement,agreeing to reach Net Zero by 2050 in order to hold global temperature rise to the safe level of 1.5°C above pre-industrial levels. At COP26 in Glasgow this pledge was reaffirmed, with 138 countries now committed to their own Net Zero target.
Consumer behavior is already shifting and increasing volumes of‘sustainable’ financial products are being released. It is clear that large volumes of investment are to flow into companies and technologies that will reduce and avoid carbon emissions. In our whitepaper, we capture the current scenario, thought-provoking frameworks which underpin our methodologies for the CLMA index, global tailwinds driving this acceleration towards decarbonisation efforts and bring to the fore the solutions required to reduce global emissions A broad range of companies that will benefit in the near, medium and long term are represented in the iClima Global Decarbonization Enablers Index (ticker: CLMA).
Unlike other ‘green’ indices, which rely on opaque ESG scores with questionable climate impact and are therefore vulnerable to greenwashing,CLMA focuses on companies with products and services that directly enable ‘CO2e Avoidance’.This refers to emissions reductions from products or services that provide the same or similar function as existing products but with significantly less emissions or enables emission reductions of a third party.