Overview of the solution
Clarity AI offers Temperature Alignment metrics to allow investors to understand whether the emissions reduction efforts of a portfolio or an organization are aligned with the goal of the Paris Agreement. These metrics are offered at company and security-level.
The underlying data for Temperature Alignment is provided by CDP according to a methodology they have developed in collaboration with the WWF. Reported targets are processed to be able to compare the companies’ rate of emissions reductions to the scenarios compiled by the IPCC, from the IPCC special report on global warming of 1.5C. Both absolute and intensity targets are assessed.
2 Temperature Alignment metrics:
Near-term Temperature Alignment: provides the global warming potential of companies based on their near-term reduction targets. It is provided for Scopes 1+2 and Scope 3 emissions separately at company, security and portfolio levels. Alignment is classified across four temperature ranges:
- 1.5ºC aligned
- 2ºC aligned
- Above 2ªC
- Well above 2ºC
SBTi Alignment: Companies’ Temperature Alignment as reported by the Science Based Targets initiative and based on their approval of the companies’ emissions reduction targets.
Clarity AI offers a streamlined visualization of the alignment of investments to the Paris Agreement, and how it compares against peers. To meet different use preferences, Temperature Alignment metrics are provided in terms of ranges and to one decimal place.
Main use cases
Assess alignment to the Paris Agreement and monitor progress
Build portfolios
Report to stakeholders
Delivery available through
Web app
Custom API
API into third-party platforms
Datafeed
