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Are ESG Equity Funds Paris-Aligned Yet?
About this event
In our latest Market Review, we find that ESG and sustainable-branded equity funds still hold significant exposure to stocks that do not comply with Paris-Aligned Benchmark (PAB) regulations—averaging over 5% in European funds and 7% in US funds.
With the ESMA guidelines deadline fast approaching and a wave of ‘de-labelling’ still underway, investors now have the opportunity to assess strategies based on substance rather than labels. Even among funds and ETFs with minimal non-PAB exposure, we observe wide variations in carbon footprints, SDG profiles, and factor/sector biases, underscoring the need for independent, data-driven analysis.
Under scrutiny:
- The proportion of stocks that would be excluded from European versus U.S. active equity funds if subjected to a PAB screen.
- The carbon footprint of European versus U.S. active equity funds.
- Ongoing changes (particularly in the U.S.), including adjustments at corporate level, that require attention.
Meet the speakers
Aurore Porteu de La Morandière
ESG & Quant Researcher,
Scientific Climate Indices..
ESG & Quant Researcher,
Scientific Climate Indices..
Shahyar Safaee
Deputy CEO and Business Development Director, Scientific Climate Indices
Deputy CEO and Business Development Director, Scientific Climate Indices
