Discussing a Cumulative Metric to Improve the Assessment of Emissions Targets

Year Published

2024

Contributing Organizations

Institutional Investors Group on Climate Change (IIGCC)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Climate Models & Scenarios

Topic 2

Risk Management

Topic 3

Target Setting

Target Audience

Asset Owners

Asset Managers

Real Economy Corporates

Advisors & Consultants

Governments & Policymakers

Relevant Geography

Middle East and North Africa

Resource Description

This resource introduces Cumulative Benchmark Divergence (CBD), a new metric for assessing how well corporate emissions targets align with climate benchmarks by focusing on cumulative emissions over time.

Why This Matters

CBD offers a clearer, climate-relevant view of emissions performance and transition risk, helping investors strengthen engagement and portfolio alignment strategies.

Key Insights

CBD captures the total emissions gap between company targets and a 15°C pathway from 2020–2050
Positive scores indicate misalignment; zero or negative scores show alignment
CBD improves on point-in-time assessments by reflecting actual climate impact
It can be applied at company or portfolio level and used with publicly available data
Emission-intensive companies heavily influence portfolio CBD results

Secondary File Resources

Secondary Resource Link(s)

European Electric Utilities: A Decade to Decarbonise

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