| Paris alignment | Reasoning |
|---|---|
| Unaligned | No information on the application of an internal carbon price can be found. |
Disclaimer: KfW Group is comprised of four institutions: KfW Development Bank, KfW IPEX Bank (Export credit agency), DEG (private sector finance in developing and emerging markets) and a branch for domestic lending and support. Unless specified otherwise, the provided information concern the entire KfW Group.
Explanation
The KfW Group incorporates ESG criteria in its investment decisions, partnering with ISS-oekom. However, the bank does not seem to be working with an internal carbon price.
Recommendation:
Apply a shadow carbon price throughout the portfolio that is in line with the High-Level Commission on Carbon Prices (HLCCP) recommendations.
Last Update: November 2022