Illuminate portfolios are designed to align with the Paris-Aligned Benchmark, pairing the leading sustainable investment framework with voting for climate action across companies. We're the first robo-advisor to take on shareholder voting, and we do this to advance sustainability-forward action across the companies you own.
What is the Paris-Aligned Benchmark?
The Paris-Aligned Benchmark (PAB) is an globally recognized framework that provides investors with the tools for pursuing a low-carbon sustainable investment strategy. It's designed for those who want to be at the forefront of limiting global warming to 1.5°C above pre-industrial levels.
Key Features of the Paris-Aligned Benchmark
The PAB has several distinguishing characteristics:
Requires a 50% reduction in carbon intensity compared to the investable universe
Excludes companies involved in fossil fuels (coal at 1%+ revenue, oil at 10%+ revenue, natural gas at 50%+ revenue) and electricity producers with high greenhouse gas emissions
Requires at least 7% year-on-year carbon reduction, aligned with or exceeding the decarbonization trajectory of a 1.5°C scenario
Maintains a stronger ratio of green to brown investments (factor of 4) compared to the investable universe
Allocation increases are prioritized for companies that set science-based targets to avoid greenwashing
Excludes companies involved in controversial weapons and those that violate societal norms such as UN Global Compact Principles
Disqualifies companies from the portfolio after 2 consecutive years of misalignment with the required decarbonization trajectory
Illuminate portfolios are diversified across global regions including U.S., developed markets and emerging markets and we allocate our bond portion of the portfolio exclusively to Green Bonds. You can customize your portfolio with themes including Climate Technology, Women's Empowerment, Carbon Credits, Water Solutions, and Clean Energy, or just stick with the Core Portfolio.
We provide detailed reporting on sustainability metrics, including carbon emissions, implied temperature rise, exposure to climate-related physical risks, and more to help you understand your portfolio's progress.