Portfolio Decarbonization Coalition
ESG investment.
(PDC).
Portfolio decarbonization can be achieved by withdrawing capital from particularly carbon-intensive companies, projects and technologies in each sector and by re-investing that capital into particularly carbon-efficient companies, projects, and technologies of the same sector.
It can also be achieved through targeted engagement by investors with portfolio companies.
When large institutional investors start to engage and/or re-allocate capital on the basis of companies’ greenhouse gas (GHG) emissions it provides a strong incentive for those companies to re-channel their own investments from carbon-intensive to low-carbon activities, assets and technologies.
PDC members include asset owners and asset managers.
In addition to offering knowledge exchange and stakeholder dialogue opportunities, the PDC requires all its members to commit to a concrete decarbonization plan as a condition of their membership.
