Portfolio decarbonization can be achieved by withdrawing capital from particularly carbon-intensive companies, projects and technologies in each sector and by re-investing that capital into particularly carbon-efficient companies, projects, and technologies of the same sector. It can also be achieved through targeted engagement by investors with portfolio companies. When large institutional investors start to engage and/or re-allocate capital on the basis of companies’ GHG emissions it provides a strong incentive for those companies to re-channel their own investments from carbon-intensive to low-carbon activities, assets and technologies.
What makes us different
There already exist a number of important investor and finance sector fora which investors can join to learn about climate change or to engage in dialogue with governments, legislators and other stakeholders. While the PDC will also offer ‘knowledge exchange’ and’ stakeholder dialogue’ opportunities it will differ from other networks because it will be fully action-oriented: all PDC members will commit to concrete and quantifiable carbon-footprinting as well as portfolio decarbonization targets (for more detail, please refer to the PDC membership criteria)
Promoting Openness and Transparency
The PDC will be open to any carbon-footprinting and decarbonization methods and techniques that investors may want to use in fulfilling their commitments. The only requirement is that investors fully and publically disclose an overview and key features of the employed techniques and methods. All the information submitted to PDC by its members will be disclosed publically, via the PDC website.
Best Practice Exchange
A key objective of PDC is to advance learning and increase clarity. To that end, PDC will enable the sharing of experiences between financial actors through its website and other communications, as well as commission relevant research.