From Portfolio Decarbonization to Real Economy Transition

Investors across the world have set ambitious net-zero commitments, with many targeting significant emissions reductions across their portfolios by 2030 and beyond. However, simply selling high-carbon assets does not necessarily reduce global emissions — it may only shift those assets to another owner rather than supporting real economic transition.

David Russell explains that investors must instead focus on encouraging companies to develop credible transition plans supported by stronger reporting, governance, and measurable targets. Improved climate data, particularly in emerging markets, alongside robust scenario analysis and transition assessment frameworks, will play a crucial role in helping investors understand how companies are managing climate risk and progressing toward net zero.