Temperature scoring and SDA in the same portfolio

Hi guys!

I have a listed equity portfolio where it is possible to apply SDA for some companies and calculate a sector target. For the οther companies whose sector is not covered by SDA, I will apply the TS method.

Given that these two methods will give a different output within the same portfolio (an emission intensity indicator for SDA and a temperature score for TS), I would like to ask you, for reporting purposes if it is necessary to formulate a unique target for our portfolio by combining (and how?) these two different outputs or not?

Thanking you a lot and in advance

Best regards

Vasso

Hi,

You can use any combination of SDA, Portfolio Coverage and Temperature rating for your listed equity target. Regarding the target language, here’s a post from @SBTifinance discussing the options.

Best,
Donald

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Thanks a lot Donald!

Best regards

Vasso