Asset managers are increasingly using Portfolio Alignment Tools (PAT) to align their portfolios with temperature goals outlined in the Paris Agreement. At Decimal Point Analytics, we recently hosted a closed-door Round Table discussion on "Portfolio Alignment Tools: Current practices and outlook," where we explored the challenges and best practices of PAT models.
Our session highlighted several key takeaways, including regulatory compliance expectations, the use of publicly available data combined with internal methodology, investment funds embedding ESG experts in their products, and the challenge of data. We also discussed how regulations in Europe will force companies to disclose more ESG-related information.
We were thrilled to bring together a diverse group of industry experts to discuss the latest trends and best practices for portfolio alignment tools. The financial community plays a vital role in nudging corporates towards net-zero compliance, and we believe that PAT models will play a critical role in achieving that goal.