Transitioning to net-zero

To achieve the goals of the Paris Agreement and limit global temperature rise to no more than 1.5-degrees Celsius above pre-industrial levels, it is necessary to significantly increase the level of new investment in low-carbon technologies and energy efficiency, and to reduce investments in high-emitting sectors and activities, including the extraction and unabated use of fossil fuels. “Unabated” refers to fossil fuels produced and used without interventions that substantially reduce the amount of GHG emitted throughout the life cycle.

In 2018, the Intergovernmental Panel on Climate Change (IPCC) announced that the world must invest an average of US $2.4 trillion in clean energy every year through to 2035 in order to prevent global temperature increases from exceeding 1.5-degrees Celsius. The use of unabated coal should be reduced to almost nothing by 2050, according to the IPCC.

The Investor Agenda encourages investors to make low-carbon investments and commitments including phasing out investments in unabated thermal coal – a major contributor to global GHG emissions. Investors should also integrate climate change into their long-term investment decision-making process and portfolio analysis.

Set a net-zero target

Commit to set science-based portfolio emissions reduction targets that are consistent with achieving global net-zero emissions by 2050 or sooner, with credible intermediate targets.

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Make and report our new low-carbon investments and our new low-carbon investment commitments

Commit to increasing our investments in appropriate low-carbon opportunities such as renewable energy, energy efficiency, low-carbon transportation, energy storage and energy efficient buildings.

Phase out investments in unabated thermal coal

Commit to phasing out our investments in unabated thermal coal activities (specifically thermal coal mining and coal-fired power generation).

Integrate climate change into our portfolio analysis and decision-making

Commit to integrating climate change-related risks and opportunities in our portfolio analysis and decision-making processes through one or more of:

  • Analyzing and assessing climate change-related risks and opportunities (e.g. through carbon footprinting, scenario analysis).

  • Making commitments and setting targets (e.g. to carbon footprint reduction, to enhanced portfolio resilience, and to decarbonization).

  • Investing in low-carbon investment funds and other products (e.g. low-carbon indices, climate-aligned bonds).