ESG & Investing
Temperature Scores Paint a Dark Investing Picture
Implied temperature rise, or ITR, is a new environmental gauge that’s hard to game.
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You’ve heard of ROE, EPS and EBIDTA. But what about ITR?
It’s one of the latest additions to the alphabet soup of modern finance, standing for implied temperature rise. It denotes an investment portfolio’s alignment with the 2015 Paris Agreement’s goal of limiting global warming to well below 2C of pre-industrial levels, and ideally below 1.5C (a goal that is almost out of reach).