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The criticisms of Scientific Beta extend beyond the choice of decarbonisation metric https://www.scientificbeta.com/#/documentation/latest-publications/unsustainable-proposals

It is a shame for the academic community and also for the respect of business ethics with which Mr Hoepner wishes to associate that he forgets the fundamental principles of an honest debate, which is to avoid distorting the text or the arguments of one’s opponents.

In no case did Scientific Beta oppose the integration of a decarbonisation trajectory or write that it was necessary to disregard Scope 3 carbon emissions.

The point made by Scientific Beta is that, as acknowledged by the TEG itself, current data limitations are such that if Scope 3 emissions are used directly "the effectiveness and efficiency of corporate decision making with respect to upstream and downstream Scope 3 emissions and consequential intensity reductions may only gradually find their way into climate benchmarks..." (TEG final report p. 42). Since Scope 3 emissions are larger than Scope 1-2 emissions by an order of magnitude, their joint consideration would drown the Scope 1-2 signal. The recommandation made by Scientifc Beta reads: "Unless one wishes to cynically disregard efforts made by companies in the mitigation of their greenhouse gas emissions, we recommend the consideration of Scope 3 emissions be done indirectly via related metrics that can support security-level analysis, including but not limited to fossil fuel reserves."

It is necessary to underline that, in itself, a decarbonised portfolio cannot slow down or reverse climate change. It can only have an impact if the financial decisions that it supports have an influence on polluting companies. This influence/engagement needs to be done in a effective manner. In this regard, the proposals from Mr Hoepner and his colleagues in the ESG data and services industry are wide off the mark.

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