To mark the 10th anniversary of the Paris Agreement, Sycomore AM reflects on the remarkable progress of corporate climate data, both in terms of availability and standardization. While this data is useful to investors, it is not without limitations; therefore, we believe that research and expertise remain key to identifying companies truly committed to the low-carbon transition.
Key insights from the publication:
- Climate data boom – 75% of listed companies now report operational emissions (vs. 28% in 2015), and more than 24,000 disclose to CDP, covering around 90% of European market capitalization.
- Standardisation gains – EU Taxonomy and SBTi have improved comparability and ambition checks.
- Limits remain – Scope 3 inconsistencies, intensity metrics biases, and taxonomy interpretation gaps can mislead investors.
- Benchmark risks – EU Climate Benchmarks may exclude hard-to-abate sectors, creating disconnects from the real economy and increasing tracking error.
- Our response – Sycomore AM has strengthened its climate transition assessment framework, combining rule-based criteria with expert analysis to identify credible transition plans.
At Sycomore AM, we supplement a rule-based approach supported by data with expert analysis of qualitative aspects of transition plans. This strategy allows us to combine the best of both worlds and enhance our climate alignment assessment methodology.
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