Global warming is characterised by a steady increase in the average global temperature and the resulting atmospheric phenomena such as floods, desertification and drought, melting glaciers and rising oceans.

The main cause is human activity, primarily industrial activity, which is responsible for the increase in greenhouse gas emissions and the consequent rise in global temperatures.

Trying to curb global warming means pushing in the direction of projects that aim to lower CO2 in the atmosphere in order to mitigate climate change; it is also about adapting to its consequences, as also stated in the European Union's Environmental Taxonomy.

The objectives of mutual funds that adhere to the EU's Environmental Taxonomy and thus aim at climate change mitigation and adaptation can either go hand in hand directly with the issue of global warming (investing directly in climate change prevention) or have investment plans that indirectly lead to the same result (investing in renewable energy, infrastructure and sustainable transport).

The related issue is the strengthening of biodiversity, as the presence of forests, and in particular large trees and healthy natural ecosystems allows us to offset some of the Greenhouse Gases we emit.

Sustainable investors use different management strategies to combat climate change:
- Exclusionary approach: many funds address global warming by excluding Society that cause damage to the environment, are involved infossil or nonrenewableenergy extraction, or through their activities contribute to theemission of CO2 into the atmosphere.
- Thematic approach: some funds invest only in Society and projects that are directly related to global warming mitigation and prevention.
- Regulatory approach: these funds are particularly attentive to the contents of theParis Climate Agreement and the Rio Convention on Environment and Development, and to countries/ Society that commit to emission reduction criteria within
of these agreements.
- Best practice: funds commit to monitoring key adverse impacts and in particular the amount of CO2 emitted by their own in Portfolio.

Currently, we have identified about 110 criteria for determining the relevance of the climate warming issue to the activity of mutual funds in our universe:

Screening, ESG Risk assessment, andESG Impact assessment strategies are fairly balanced on climate change, with a slight preponderance of Screening and Impact criteria.

The most frequently used strategies with regard to Screening are: the exclusion of fossil fuels, coal, gas, and nuclear energy, as well as the prevention of deforestation; with regard to ESG Risk: the stipulations of international climate treaties; and for ESG Impact: adherence to initiatives aimed at lowering emissions such as the CDP (Carbon Disclosure project).

Greenhouse Gas emissions to the atmosphere are specifically measured through one main measure: CO2 emissions.

All emissions of other gases are included through a system of equivalence in the CO2 measure, which is thus intended to be a general measure.

The United Nations has estimated that we need to reduce our Greenhouse Gas emissions by 45 percent to control the rise in temperatures on Earth within the limits defined by the Paris Agreement (+1.5 degrees vs. pre-industrial temperatures).

It is definitely the main area of focus in Europe, which wants to generalize the quantification of harmful emissions:

Europe makes it mandatory for sustainable funds to publish:

• Greenhouse gas emissions (Society/States):
  Carbon Emissions should be divided into:
  Scope 1: Emissions generated by sources controlled by Society, such as an airline emitting exhaust gases;
  Scope 2: Emissions that are created by the generation of the electricity or heat necessary for the company to sell its main products or provide its main services;
  Scope 3: all indirect emissions that are not covered by Scope 1 and 2 that occur in the value chain of the reporting company, including upstream and downstream emissions, particularly for sectors with a high impact on climate change and its mitigation.

• Carbon footprint (Carbon footprint).:
  It is the ratio of greenhouse gas emissions to the total current value of investments. The lower it is, the better.
• Greenhouse gas intensity of Society participated in.:
  This is the total greenhouse gas emissions of the parent company and its subsidiaries measured in metric tons of CO2, per million dollars of revenue. The lower, the better.
• Exposure to Society active in the fossil fuel industry.:
  It is the share of investment in companies active in the fossil fuel sector.
• Share of non-renewable energy consumption and production.: This is the share, expressed as a percentage, of non-renewable energy consumption and production by Society investees compared to renewable energy sources.
• Energy consumption intensity by high climate impact sector.:
  This is the energy consumption (in GWh) of companies at Portfolio per million in revenue. We focus on the economic sectors that have the greatest climate impact.

• Exposure to fossil fuels through real estate activities.:
  The share of investment in real estate involved in the extraction, storage, transportation or production of fossil fuels.
• Exposure to energy inefficient real estate assets: The share of investment in energy inefficient real estate assets. The lower, the better.

Europe advises Sustainable funds to measure on an optional basis:

• Emissions of inorganic pollutants.:
  The measure in tons of inorganic pollutants per million invested.
• Emissions of air pollutants.:
  The measure in tons of air pollutants per million invested.

• Emissions of ozone-depleting substances.:
  The measure in Tons of ozone-depleting substances per million invested.
• Investment in companies without carbon reduction initiatives.:
  The Share of companies in Portfolio that have not undertaken carbon emission reduction initiatives.
• Breakdown of energy consumption by type of nonrenewable energy sources.:
  The Share of energy from nonrenewable sources used by Society investees broken down by each nonrenewable energy source.
• Greenhouse gas emissions (real estate):
  The Total Greenhouse Gas Emissions generated by real estate.
• Intensity of energy consumption (real estate):
  The Energy Consumption in GWh of real estate owned per square meter.

The October 2022 United Nations report on the State of Greenhouse Gas Emissions :

https://www.unep.org/interactive/emissions-gap-report/2022/

A pedagogical video in French on global warming and the Greenhouse Effect :