Italy Is at the Bottom of the DPAM Ranking on Compliance with the Paris Agreement

Italy is ranked twenty-first out of 23 in the Paris Performance Ranking, the ranking regarding compliance with the Paris Agreement by DPAM and Hugo Observatory (University of Liège). The ranking assesses alignment with Articles 2, 7, 9, 10, 11 and 13 of the agreement, examining the results of 23 countries on six key topics: current emissions, projected emissions, net zero objective, adaptation, means of implementation and multilateral transparency.

The ranking is structured so that each topic includes three indicators and the aggregated and weighted results of the topics provide the final ranking position of each country.

According to the asset manager’s analysis, Italy is struggling to keep pace with its peers on several key indicators

And while its emissions reductions put it in the middle of the pack (12th for current emissions and 15th for projected emissions), it lags behind in terms of domestic adaptation efforts, the rigor of its net zero target, and its commitment to multilateral transparency.

The ranking currently includes Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, the United Kingdom and the United States.

Of these, Austria leads the first edition of the Paris Performance Ranking, taking first place : its commitment to achieving net zero a decade ahead of most developed countries and its all-round performance on other issues cement its leading position. However, there is room for improvement here too, particularly in international climate finance, where Austria ranks 16th.

“This is the first time we have seen a composite indicator that ranks countries’ performance beyond mitigation and recognizes the multidimensional nature of the Paris Agreement and international climate action. This is a significant step towards redefining what it really means for a country to fight climate change,” said Aidan Geel, a PhD student at the University of Liège, who has been working on the ranking for the past year.

In line with DPAM’s engagement activities with countries on the topic of sustainability, this three-year project will strengthen its commitment and increase the impact of its investments at the national level, strengthening engagement and dialogue with governments. On the investment front, the ranking will provide additional data and insights useful for the country sustainability model that the asset manager uses to evaluate states.

The company is also studying the possibility of including this ranking, or the research that underpins it, within the model itself, once the necessary countries are covered by the analysis.

“As DPAM’s primary objective is to advance to thrive, creating growth that benefits clients and society, as embodied in our motto Advance to thrive , we have been integrating sustainability analysis into our sovereign bond investment process for many years. We want these investments to support the objectives of the Paris Agreement to prevent harmful global warming and to support the transition. This ranking, in which Italy ranks among the last, will deepen our knowledge by highlighting how countries are delivering on their commitments under the agreement,” said Ophélie Mortier, Chief Sustainable Investment Officer at DPAM.

Germany and Switzerland on the podium with Austria. Italy should take exemple

Just below Austria are Germany and Switzerland, in second and third place respectively.

In particular, Germany excels in the rigor of its net zero target and stands out for its strong support for developing countries, mainly through international climate finance. These strengths secure the silver medal. However, there is room for improvement: the country lags behind in terms of greenhouse gas emissions, failing to conquer the first place.

Bronze instead for Switzerland which obtains very significant results regarding current and projected emissions, arriving third in both categories, and maintaining a solid commitment to multilateral transparency, where it ranks sixth. The room for improvement for the country lies in the area of ​​international climate finance, where it ranks ninth.

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(Featured image by Hongbin via Unsplash)

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