So far, companies in the S&P 500 lag behind their international peers on climate action. Fewer than one-quarter of the US companies have set or accomplished climate goals that put them in alignment with the Paris Agreement, compared to 44% in Europe, even though more than half of S&P 500 companies have assets that are at high risk of physical damage from climate change. But increasingly, the market is rewarding companies that clean up: Paris-aligned companies have outperformed the overall S&P 500 by 11 points since the 2015 agreement.

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