ClimateALIGN

ClimateALIGN generates an Implied Temperature Rise (ITR) score as a forward-looking portfolio net-zero alignment metric. The ITR is based on a portfolio’s emissions, emissions-reduction targets, and allocation benchmarked against granular decarbonization scenarios.

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Ortec Finance’s Independent On-Demand ITR Platform Powered by ESG Book’s Emission Data
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Monitor portfolio net-zero alignment by 2050

ClimateALIGN is Ortec Finance’s independent on-demand Implied Temperature Rise (ITR) analytics platform. Aimed at public and private markets, it is powered by ESG Book's emissions data. The methodology is in line with the TCFD Portfolio Alignment Team’s (PAT) recommendations.

Key Features

ESG Book’s single source solution enhances corporate sustainability operations, powers better ESG insights, and enables more effective reporting with multiple stakeholders.

Scenarios

Independently sourced and scientifically informed assumptions, input data, and methodology.

Coverage

Highly granular sector and region coverage—more than 500 sector-region combinations covering the entire investible universe, across all sectors and regions— the ClimateMAPS scenarios integrate and utilize the most advanced macro-econometric model (E3ME) built by Cambridge Econometrics coupled with Ortec Finance’s own stochastic financial model.

Methodology

Open-source methodology leveraged through Ortec Finance’s contribution to OS-Climate’s Portfolio Alignment tool, in line with standards and best practices set by TCFD’s Portfolio Alignment Team (PAT).

Projections

Forward-looking emissions projections based on historical trends from disclosed carbon footprints, SBTi’s verified decarbonization targets, and modeled “business as usual” assumptions.

Company Data

Disclosure feature enables ongoing data enhancements and updates, using ESG Book platform to request data from public and private companies.

Proxies

Granular sector-region proxy scores available for (private) companies, built on ESG Book’s climate data universe and modeled data.

Use Cases and Applications

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Measure, manage and monitor your portfolio’s degree of alignment to net-zero by 2050.

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Understand your own company’s alignment to net-zero by 2050 (1.5°C)

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Asses how many of your holdings have disclosed relevant data

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Engage with portfolio companies by requesting directly on platform to calculate scores using actual, reported data instead of proxies

Meta Data

Type Information
Update Frequency Monthly
Data Sources ESG Book and Cambridge Econometrics E3ME Model
Methodology Sources Open-Source Climate (OS-Climate) and Ortec Finance
Geographic Coverage Global
Time Period Coverage 2025, 2030, 2050
Raw / Scraped Data ESG Book’s Emissions and Financial Data
Number of Companies Covered

Full universe coverage:

  • 3,900+ with company-specific disclosed datapoints gathered in accordance with GHG Protocol and PCAF’s data quality level 1 + 2 requirements*.
  • Remainder of investable universe covered by sector-region default scores**.

* Company coverage will grow as a function of improved public corporate reporting and / or disclosure on ESG Book dashboard.

**Subject to clients sharing sector / region information to facilitate mapping to default proxies

Methodologies

  • ITR scores are derived based on two scenarios from ClimateMAPS powered by Cambridge Econometrics:
    • High Warming Scenario (4.2 °C rise by 2100)
    • Net Zero Scenario (1.5 °C rise by 2100)
    Net-Zero
    • Early and smooth transition
    • Market pricing-in dynamics occur smoothed out in the first 3 years
    • Locked-in physical impacts
    • Average temperature increase by 2100 of 1.5°C
    • ‘Very low emissions’ IPCC scenario
    Tests exposure to the risks/opportunities from the systemic drivers of an orderly transition and locked-in physical risk
    Net-Zero
    Financial Crisis
    • Sudden divestments in 2025 to align portfolios to the Paris Agreement goals have disruptive effects on financial markets with sudden repricing followed by stranded assets and a sentiment shock
    • Locked-in physical impacts
    • Average temperature increase by 2100 of 1.5°C
    • ‘Very low emissions’ IPCC scenario
    Shows the resilience of portfolios to sudden repricing, trigger market dislocation centered on high-emitting stocks
    Limited Action
    • Policymakers implemented limited NDC’s and fall short of meeting the Paris Agreement goals.
    • High gradual physical & extreme weather impacts.
    • Average temperature increase by 2100 of 2.8°C
    • ‘Intermediate emissions’ IPCC scenario
    Highlights how scaled-down transition policy leads to larger physical risk and material transition risk for portfolios
    High Warming
    • The world fails to meet the Paris Agreement goals and global warming reaches 4.2°C above pre-industrial levels by 2100.
    • Very severe gradual physical and extreme weather impacts.
    • Average temperature increase by 2100 of 4.2°C
    • ‘high emissions’ IPCC scenario
    The main focus of this pathway is physical risk, results show the exposure to plausible, severe climate change impacts

    ClimateALIGN uses the Net-Zero and High Warming scenarios from ClimateMAPS for its analyses. The ClimateMAPS scenarios are developed in-house and used as a default starting point. However, standard reference scenarios and other customized scenarios can be onboarded for alignment analyses on a bespoke basis
    — please get in touch, we would be happy to explore possibilities.

  • ClimateALIGN uses company-specific historic (reported) Scope 1-3 emissions data and financial data to calculate ITR outputs. Specifically:

    • Reported Scope 1, 2 and 3 emission data
    • SBTi approved net-zero targets
    • Temperature alignment (ITR) by 2050 at company, sector, region, and portfolio level
    • Analytics and outputs for three time horizons (2025, 2030, 2050)
    • Sector-region proxy scores used for companies without disclosed input data

  • The Paris Agreement’s 2100 commitment of well-below 2°C means that by 2050 the average global warming needs to be much lower than 2°C. ITR scores reflected on the ClimateALIGN dashboard are expressed in 2050 terms, which means that any ITR score greater than 1.6°C based on current modelling will fail to meet Paris goals. If the world is to reach net-zero emissions by 2050, the ITR needs to be at or below 1.5°C.

  • ortec methodology

  • The Paris Agreement’s 2100 commitment of well-below 2°C means that by 2050 the average global warming needs to be much lower than 2°C. ITR scores reflected on the ClimateALIGN dashboard are expressed in 2050 terms, which means that any ITR score greater than 1.6°C based on current modelling will fail to meet Paris goals. If the world is to reach net-zero emissions by 2050, the ITR needs to be at or below 1.5°C.

    Sectoral Distribution
    code mapping

    *Charts are not to scale but are relative to the data distribution across sectors/geographies.

    Geographical Distribution
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    *Charts are not to scale but are relative to the data distribution across sectors/geographies.

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Get in Touch

Access ClimateALIGN directly on the ESG Book platform or reach out to our team for support.

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