Climate-Aligned Investing vs ESG Investing

Climate-aligned investing and ESG investing are frequently used interchangeably — but they use different data, apply different methodologies, and produce materially different portfolios. ESG investing uses aggregate third-party ratings from providers like MSCI or Sustainalytics to assess governance risk. Climate-aligned investing targets companies based on real-world warming trajectories, harm-category revenue exclusions, and net-zero commitment credibility. A company can score highly on an MSCI ESG rating while still deriving significant revenue from fossil fuels or weapons manufacturing.

The full guide is coming soon. In the meantime, the Ziggma Impact Investing Guide covers the ESG vs impact distinction in full, including how Ziggma’s Impact Score differs from aggregate ESG ratings.

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