CONTENTS
Paris-aligned refers to actions or climate scenarios consistent with the Paris Agreement’s goal of limiting global warming to 1.5°C. It generally assumes rapid emissions reductions and strong climate policies.
Example in context
When planning future risk exposure, a pension fund compares asset-level climate risks under a “business-as-usual” scenario and a Paris-aligned scenario. The Paris-aligned path shows lower physical risk but greater transition risk.
Why it matters
Paris-aligned scenarios are used in CSRD, ISSB, and investor reporting to benchmark resilience. They show how risks change in a decarbonising world and support stress-testing for long-term planning.
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