Thursday 6 August 2020
Investors worth $16 trillion launch net zero investment framework
A group of 70 global investors, representing more than $16 trillion (£12.1 trillion) in assets, have launched a framework aimed to support efforts to decarbonise their portfolios.
The consortium includes the Church of England Pensions Board, Aberdeen Standard Investments, Aviva Investors, AXA Investment Managements, Royal London Asset Management and Scottish Widows.
The initial framework, which has been published for consultation, consists of a set of recommended actions, metrics and practices that will seek to enable both asset owners and asset managers to become 'net zero investors'.
Investors are encouraged to set targets combining smart capital allocation, engagement and advocacy activity to maximise their impact in driving the transition to a net zero world.
Five investors of the group will trial the framework by modelling its impact on their global portfolios, which are collectively valued at $1.3 trillion (£1 trillion) - the results of this analysis are expected to be launched with the final framework, expected before the end of 2020.
Stephanie Pfeifer, CEO, Institutional Investors Group on Climate Change, said: "The willingness is there, but until now the investment sector has lacked a framework enabling it to deliver on this ambition.
"As we work towards investors adopting the framework before the end of the year, the race is now on in the run-up to COP26 for asset owners and managers to show they will be net zero investors.
