Capturing the °Climate Factor | Linking Temperature Alignment and Financial Performance

In this whitepaper, we explore the correlation between climate performance and financial performance. An analysis of the temperature alignment and stock market value of a total of 856 of the largest European stocks over the period 2013-2020 shows: Those stocks that are particularly well aligned with the <2°C target of the Paris Climate Agreement clearly outperformed the market and weaker climate performers. It seems: the 'greener' the better - also in financial terms.