* As of 2020
1. Compensation measures include supporting the avoidance of further emissions (e.g., preserving natural carbon sinks such as forests), and helping others
reduce emissions via new technologies that are less carbon intense.
2. Neutralisation measures remove CO2e from the atmosphere via nature-based (e.g.,reforestation) and technology-based (e.g., direct air capture) sequestration.
3. 5% portfolio allocation to carbon allowances vs the expected return for a regular 60/40 equity:bond portfolio of approximately 4 percent.
4. With 5% carbon allowances inclusion vs the expected returns for a regular 60/40 equity:bond portfolio with approximately 4% annualised return.
Source: Taskforce on Scaling Voluntary Carbon Markets, January 2021, iif.com