Investors constructingnet zero portfoliosoftenoverweight technology stocksbecause:
Tech companies tend to have lower direct carbon emissions (Scope 1 & 2).
Excluding Scope 3 emissions (indirect supply chain emissions) makes tech firms appear even
"greener."
There is no universally accepted (A) carbon netting standard.
Derivatives and short positions (B) remain controversial in ESG investing, with no consensus on
accounting.
Reference:
Net Zero Asset Owners Alliance Portfolio Alignment Report
MSCI ESG Portfolio Construction Guidelines
Principles for Responsible Investment (PRI) Net Zero Investment Framework
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