Acadian model detects gaps between climate goals and reality

Quant shop builds tool for net-zero alignment assessment, using NLP and Bayesian models

Acadian Asset Management has built a net-zero alignment model to make probabilistic predictions about entities’ chances of meeting their stated decarbonisation goals. The results paint a dire picture about the void between corporations’ stated goals and how they are performing in practice.

“Companies are not decarbonising – or at least we’re not seeing it with our models – at the rate that is suggested by the Paris Accord,” says Devin Nial, portfolio manager at Acadian. The international treaty