How to measure the temperature of sovereign assets

FTSE Russell and Beyond Ratings offer a methodology to assess countries’ implied global warming temperatures based on their national commitments concerning climate change mitigation, as per their NDCs (“Nationally Determined Contributions”), submitted to the UNFCCC. 

This approach is particularly relevant for investors who want to assess their alignment with climate targets (e.g. 2°C targets), and the underlying risks resulting from exposure to countries presenting a misalignment with these targets.  

You can now read the full whitepaper at the link below