Proactively transitioning to a 1.5°C-aligned portfolio
When comes to aligning an equity and bond portfolio with the Paris climate target, the first step is to ensure transparency regarding the climate impact of each individual asset. The XDC Portfolio Explorer from right° was used to analyse Salm-Salm & Partner’s entire investable universe, enabling portfolio managers to see at a glance which companies were already on the 1.5°C pathway and which were not. The X-Degree Compatibility (XDC) M examines a company’s economic activities and calculates their impact on global warming in °C. With the aid of this simple climate metric from right°, stocks from various sectors can be searched and ranked according to their Paris compatibility. The Salm-Salm & Partner team use the web-based XDC Portfolio Explorer to pre-filter their stock picks in line with their climate convictions. And when managing their Article 9 global equity funds in line with the EU’s Sustainable Finance Disclosure Regulation (SFDR), they use the XDC Portfolio Explorer to regularly review and report on the climate impact of investments.