Report and Webinar | Measuring the Alignment of Portfolio Emissions — towards a “kantitative” approach

How to measure the climate alignment of a portfolio without masking the moral choices nestled at the heart of the metrics? In his new job, Vincent Bouchet (ESG Director, Scientific Portfolio — EDHEC Venture) offers a new reading: distinguishing what falls under the scientific standardization (methodological coherence, technical parameters) of what constitutes, inevitably, ethical judgments (scope of emissions selected, sharing of the carbon budget between companies).

Three archetypes of “ethical investors”

To get out of the false consensus and make arbitrations explicit, the study introduces three investor archetypes:

• The Principiel (principled investor): priority to principles, inter-company equity, carbon budget allocation based on shared duties.
• The Utilitarian (utilitarian investor): maximizing the reduction of “real” emissions where the marginal effect is strongest.
• The Harmonist (harmonist investor): search for an operational compromise between equity, efficiency and sectoral feasibility.

Applied to a diversified equity portfolio, these prisms change the aggregate alignment little, but profoundly change the results in climate-critical sectors (energy, materials, transport). This is where emission trajectories, perimeters (Scopes) and the distribution of carbon budgets change the assessment.

“I deliberately limited ethical principles to well-known concepts and bent them to the practical questions of the moment. This work is exploratory: it aims to open the discussion on the inevitable ethical dimension of our tools, while staying the course of action.” — V. Bouchet

Why it is decisive

• Metric transparency : making “design choices” visible (scenarios, scope, aggregation) avoids incomparable results and accusations of greenwashing.
• Actionable decisions : to know where Ethics influences measurement helps managers, regulators and data providers to Documenting and substantiate their methods.
• Convergence of the field : CAPA (ILB x Scientific Portfolio) work shows that certain options weigh heavily on the results (e.g. horizon, projection mode, denominator), hence the value of a robust sensitivity framework.

Launch Webinar

A webinar in English with the author Vincent Bouchet and moderated by Stéphane Voisin, will present the main lessons:

• Deciphering the ethical choices included in the alignment methodologies.
• See how These prisms displace the results at the sectoral and business level.
• Discuss the implications for investors, regulators and practitioners (transparency & comparability).

➡️ Register for the webinar (Microsoft Teams): https://events.teams.microsoft.com/event/5cdf1005-c009-4fed-a6a0-7ee311f04081@15c185cf-bb12-45d5-bcd3-6ba3057b70f6

Going further — the report (EN)

The Report is available in English :

• THE ALIGNMENT OF PORTFOLIO EMISSIONS: A KANTITATIVE APPROACH by Vincent Bouchet : https://cdn.prod.website-files.com/672cea0ae7889396005b1e87/68b7fa79dd5c29b90a909457_measuring-the-alignment-of-the-portfolio-emissions-2025.pdf

• Implied Temperature Rise of Equity Portfolios: a Sensitivity Analysis Framework (CAPA project, ILB x Scientific Portfolio) — download it here:
  https://cdn.prod.website-files.com/672cea0ae7889396005b1e87/67e9af362e7bb34d604550f1_implied-temperature-rise-of-equity-portfolios-2205-1.pdf

(This CAPA report provides the technical framework for analyzing the impact of methodological choices on alignment metrics, a natural complement to the “kantitative” approach presented during the webinar.)

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