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 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

Launched at the UN Climate Action Summit in September 2019, the United Nations-convened Net-Zero Asset Owner Alliance is a group of over 30 of the world’s largest investors managing over $5 trillion in AUM and committing to reducing carbon emissions in their portfolio to net zero by 2050.

On 13 October 2020, the Alliance released the 2025 Target Setting Protocol for public consultation.

The Protocol explicitly sets out how individual members will set their own emission reduction targets in the next five years. Alliance members have used IPCC 1.5C no- and low-carbon pathways to inform their targets under the Protocol, which carefully balances scientific ambition, active ownership engagement, and divestment constraints.

Please visit the United Nations-convened Net-Zero Asset Owner Alliance

 

The Science Based Targets initiative for financial institutions

The Science Based Targets initiative (SBTi) is a partnership between CDP, the United Nations Global Compact (UNGC), World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).

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 Paris Aligned Investment Initiative and the Net Zero Investment Framework

Launched in May 2019 and established at the request of European asset owners, IIGCC’s Paris Aligned Investment Initiative (PAII) looks at how investors can align their portfolios to the goals of the Paris Agreement.

Developed with over 70 global investors, representing more than $16 trillion in assets, its ‘Net Zero Investment Framework’ provides a comprehensive set of recommended actions, metrics and methodologies, which will seek to enable both asset owners and asset managers to effectively become ‘net zero investors’.

An ‘investment strategy’ led approach, supported by concrete targets set at portfolio and asset level – combined with smart capital allocation, and engagement and advocacy activity – ensure investors can maximise their impact in driving real-world decarbonisation.

The Net Zero Investment Framework is available here

 

For more information, please email The Investor Agenda at info@theinvestoragenda.org