Beyond Net Zero: How to Mobilize Passive Investing Towards Paris Alignment With a Focus on the United States

This research paper introduces a framework for Paris-aligned passive investing and evaluates 35 sustainable funds from the United States and the European Union, finding that none are fully aligned with the proposed criteria.

• An analysis of 35 funds revealed that not a single one was fully aligned with the paper's framework for Paris-aligned passive investing.
• Many funds lack critical climate-related exclusions and considerations; while fossil fuel exclusions are common, most funds ignore deforestation exclusions, physical climate risks, resilience, and climate governance or lobbying.
• There are significant gaps in social and ethical exclusions: no diversified or thematic climate funds exclude human rights violations, and no climate-focused fund integrates a 'just transition' theme into its portfolio construction.
• Investment stewardship and methodology disclosures are insufficient, lacking transparency on tangible actions and how ESG factors are weighted in security selection.
• The paper recommends that U.S. asset managers, index providers, and financial regulators collaborate to improve transparency and create funds that meet Paris alignment criteria, while noting that data gaps at the company level hinder index development.

APA

World Resources Institute (n.d.). Beyond Net Zero: How to Mobilize Passive Investing Towards Paris Alignment With a Focus on the United States. https://www.wri.org/research/beyond-net-zero-how-mobilize-passive-investing-towards-paris-alignment-focus-united-states

Chicago

World Resources Institute. Beyond Net Zero: How to Mobilize Passive Investing Towards Paris Alignment With a Focus on the United States. n.d. https://www.wri.org/research/beyond-net-zero-how-mobilize-passive-investing-towards-paris-alignment-focus-united-states.

Wikipedia

{{cite report |author=World Resources Institute |title=Beyond Net Zero: How to Mobilize Passive Investing Towards Paris Alignment With a Focus on the United States |url=https://www.wri.org/research/beyond-net-zero-how-mobilize-passive-investing-towards-paris-alignment-focus-united-states |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendbeyond, author = {{World Resources Institute}}, title = {{Beyond Net Zero: How to Mobilize Passive Investing Towards Paris Alignment With a Focus on the United States}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/beyond-net-zero-how-mobilize-passive-investing-towards-paris-alignment-focus-united-states}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }