December 21, 2021 | Documents

Building Benchmarks Portfolios with Decreasing Carbon Footprints

In this paper, the authors build portfolios with decreasing carbon footprint, which passive investors can use as new Paris-consistent (PC) benchmarks and have the same risk- adjusted returns as business as usual (BAU) benchmarks. As the distribution of firms’ carbon intensity is very skewed, excluding a small fraction of highly polluting firms can massively reduce […]

November 29, 2021 | Documents

Divesting: for what impact?

Sustainable finance is experiencing a period of spectacular growth and the role of finance is being questioned in an unprecedented manner. Among the environmental, social and governance (ESG) strategies used by responsible investors, the simplest, and undoubtedly the most popular, is that of excluding bad ESG performers – also referred to as divesting or exclusion. […]