June 1, 2021

Measuring Portfolio Alignment: Technical Supplement


The Task Force conducted a public consultation from October 29, 2020–January 28, 2021, to gather feedback on potential forward-looking metrics for financial institutions. In conjunction with this consultation, the Portfolio alignment Team (PAT) issued a report in 2020 titled Measuring Portfolio Alignment: Assessing the Position of companies and Portfolios on the Path to Net Zero. This report provided a critical assessment of the strengths and trade-offs of the options available when using forward-looking metrics to measure the alignment of financial portfolios with climate goals. Responses to the consultation suggested that some organizations are actively using forward-looking metrics, with more expecting them to be useful going forward, but that many were looking for more clarity
on methodology and standardization.


In light of the findings of the Forward-Looking Metrics consultation, the Task Force commissioned the PAT to conduct further analysis and to 1) develop technical guidance on emerging best practice as it relates to building portfolio alignment tools and producing forward-looking measurements of financial portfolio alignment with the goals of the Paris Agreement, and (2) identify future research priorities where the field is not yet mature enough to identify best practice. This paper expands on and supersedes the previous Portfolio Alignment Team report.