From Disclosure to Action: The First Annual Report of the Portfolio Decarbonization Coalition

Abstract

The Portfolio Decarbonization Coalition (PDC) was co-founded in 2014 by the United Nations Environment Programme (UNEP), the UNEP Finance Initiative (UNEP FI), AP4, Amundi and CDP. PDC’s aim is to drive greenhouse gas emission reductions by mobilising a critical mass of institutional investors committed to gradually decarbonizing their portfolios.This report – the first progress report published by the PDC – demonstrates that investors can decarbonize their portfolios without harming investment performance. Furthermore, in the report, PDC members report that their decarbonization activities have resulted in them reducing their carbon emissions, reducing their exposures to fossil fuels and increasing their investments in low carbon technologies and industries of the future. The report argues that there is much to be done if decarbonization strategies are to be more widely adopted. Priority areas for action include: the development of investment products and investment solutions that enable investors to decarbonize their portfolios without compromising investment performance; the strengthening of corporate and investor reporting; the development of portfolio-level metrics that enable investors to track progress towards their decarbonization objectives; the development of a better understanding of the contribution that portfolio decarbonization can make to the goal of a low carbon economy and the timeframes over which this contribution can be made.