Paris Performance Ranking - Austria ranked #1

DPAM and the Hugo Observatory (University of Liège) have jointly developed a Paris performance ranking for countries. Connecting academia and investment, this project aims to accurately measure countries’ level of alignment to the Paris Agreement’s objectives, including limiting the global temperature rise to 1.5°C.

In line with DPAM’s engagement with countries on sustainability, this project will strengthen its commitment and increase the impact of its investments at national level, reinforcing this engagement and dialogue with the different states. On the investment front, the ranking will provide precious additional data for DPAM’s country sustainability model to assess sovereigns. The firm is studying the question of including this ranking or the underlying research in it, which could be done once it covers the requisite countries.

This ambitious project complements DPAM’s efforts to create positive change via its recently launched impact strategies, in line with its broader goal to advance to thrive, creating growth that benefits both clients and society.

The initiative is a three-year project. After one year, the output is a preliminary ranking and results, which might be subject to adaptation following feedback, review, and further developments.

The Paris Performance Ranking shows how countries are performing across the Paris Agreement’s varied pledges. In contrast, existing frameworks for measuring countries’ progress towards the Paris Agreement’s obligations focus primarily on mitigation while overlooking its broader commitments.

Currently the ranking assesses articles 2, 7, 9, 10, 11 and 13 of the Paris Agreement, looking at how countries perform across six key topics: current emissions, projected emissions, net zero target, adaptation, means of implementation and multilateral transparency. The ranking is designed so that each topic comprises three indicators and the aggregated, weighted results of the topics provide each country's final ranking.

The ranking currently covers Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom and the United States. Looking forward, coverage will extend to other Annex I countries and non-Annex I countries. This will allow the ranking to be applied to the remaining OECD countries, as well as Emerging Markets while maintaining the fairness and relevance of the rankings.

Ophélie Mortier, Chief Sustainable Investment Officer at DPAM, comments:

Aidan Geel, PHD student at the University of Liège, who works on developing the ranking with the guidance of DPAM and the University, comments: 

The ranking is accessible to the public through DPAM’s international website. Discover The Paris Performance Ranking: www.dpaminvestments.com/paris-performance-ranking

Austria leads the first edition of the Paris Performance Ranking, taking the top spot. Its commitment to reaching net zero an entire decade earlier than most developed countries and a well-rounded performance across other topics cements its leadership. However, there’s room for improvement, particularly in international climate finance, where Austria ranks 16th.

Germany excels in net zero target stringency and stands out for its strong support to developing countries, mainly through international climate finance. These strengths secure its second-place position in the ranking. However, there is room for improvement, as Germany’s performance in greenhouse gas emissions lags, preventing it from taking the top spot.

Despite respectable rankings for emissions, coming eighth in current emissions and tenth in projected emissions, Belgium lands 19th out of 23 in the final ranking. The country significantly underperforms in governance-related indicators, particularly in its net zero target and contribution to multilateral transparency. If Belgium addresses these weaknesses, its ranking could improve considerably in the coming years.

Switzerland claims third place in the ranking, performing impressively in current and projected emissions, coming third in both categories, and maintaining a solid commitment to multilateral transparency, coming sixth. Nevertheless, Switzerland has room to improve, especially in international climate finance, where it ranks ninth.

Italy ranks 21st in the Paris Performance Ranking, struggling to keep up with its peers across several key indicators. While its emission reductions place it in the middle of the pack (12th for current emissions and 15th for projected emissions), it falls behind on national adaptation efforts, the stringency of its net zero target, and its commitment to multilateral transparency.

Spain performs strongly in the Paris Performance Ranking, finishing fifth. Although it ranks 13th for current emissions and 9th for projected emissions, Spain excels in critical areas such as net zero target stringency, multilateral transparency, and its contributions to developing countries. Notably, the government is a leader in technology transfer and capacity-building initiatives.