Climate fund below 2°C
In 2019, GLS Bank started a climate impact analysis of its climate fund using the XDC Model. Some of the main challenges were:
- The coverage of different asset classes,
- data availability and
- a customized sector classification.
Through intensive collaboration between GLS Bank, Wuppertal Institute and right°, the various challenges were addressed, and the climate impact analysis of the fund was successfully completed.
The result: the fund is demonstrably <2°C-compatible. The bank can communicate the Paris Alignment of the fund to customers and stakeholders.
After successfully piloting a Temperature Alignment approach in portfolio management, GLS Bank also extended the XDC analysis to include:
- its credit portfolio,
- customer portfolios, and
- the bank itself.
This methodologically consistent application of Temperature Alignment to all asset classes and areas is the key to consolidated customer communication and transparent reporting.