Set a Net-Zero Target
The Investor Agenda encourages investors 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.
The following initiatives are all endorsed by The Investor Agenda:
- The Net Zero Asset Managers initiative
- The United Nations-convened Net-Zero Asset Owner Alliance and the Target Setting Protocol
- The Science Based Targets initiative for financial institutions
- The Paris Aligned Investment Initiative and the Net Zero Investment Framework 1.0
The Net Zero Asset Managers initiative
The Net Zero Asset Managers initiative is a group of international asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.
It is an initiative designed to mobilize action by the asset management industry that demonstrates leading practice in driving the transition to net zero and delivers the ambitious action and investment strategies that will be necessary to achieve the goal of net zero emissions.
The initiative is managed globally by six Founding Partner investor networks, namely: Asia Investor Group on Climate Change (AIGCC), CDP, Ceres, Investor Group on Climate Change (IGCC), Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI).
Please visit www.netzeroassetmanagers.org
The United Nations-convened Net-Zero Asset Owner Alliance and the Target Setting Protocol
The UN-Convened Net-Zero Asset Owner Alliance (the Alliance) is a member-led initiative of institutional investors committed to transitioning investment portfolios to net-zero GHG emissions by 2050.
Launched at the UN Climate Action Summit in September 2019, the NZAOA was the first investor initiative in the financial industry to set intermediate targets aligned with the Paris Agreement. With members from 19 countries, the NZAOA is convened by UNEP FI and the Principles for Responsible Investment and is supported by WWF and Global Optimism.
The NZAOA’s fourth Progress Report revealed significant progress towards net-zero commitments, including reductions in absolute financed emissions of at least 6% on average annually. This demonstrated that members are decarbonizing their portfolios in line with 1.5°C pathways, as defined by the Intergovernmental Panel on Climate Change.
Please visit the United Nations-convened Net-Zero Asset Owner Alliance
The Science Based Targets initiative for financial institutions
On October 1 2020, the Science Based Targets initiative launched a new framework to allow financial institutions – including banks, investors, insurance companies, pension funds and others – to set science-based targets to align their lending and investment activities with the Paris Agreement.
The SBTi also launched a new tool for temperature scoring and portfolio coverage.
Please visit the SBTi for financial institutions
The Net Zero Investment Framework
NZIF 2.0 is the latest iteration of the NZIF and is the most up to date and comprehensive net zero guidance for investors based on practical experience.
Launched in 2021, the Net Zero Investment Framework (‘the NZIF’) was a key output of the Paris Aligned Investment Initiative (PAII), a collaborative investor-led forum to support investors in aligning their portfolios and investment activities to the goals of the Paris Agreement.
Following three years of implementation, the NZIF is the most widely used resource to develop net zero strategies and transition plans by investors. To date, over 180 global investors have used the NZIF, either fully or partially, to support their PAAO or Net Zero Asset Managers (NZAM) commitment – although its reach and use extends to investors outside of these initiatives too.
The Net Zero Investment Framework was updated and published in June 2024 as ‘NZIF 2.0’. Developed following extensive consultation with over 200 investors, NZIF 2.0 is an evolution of the original framework and guidance. The ‘NZIF 2.0: Summary Guide’ provides an overview of what is necessary to understand NZIF at a high-level and is now the first resource that investors should refer to when considering implementing their net zero commitments and addressing climate risks and opportunities.
Please visit Paris Aligned Asset Owners
For more information, please email The Investor Agenda at info@theinvestoragenda.org