The Net-Zero Asset Owner Alliance, a group which consists of thirty investors managing a combined $5 trillion (£3.8tn) assets, has agreed to lower their portfolio carbon dioxide emissions by up to 29% in the next five years, compared to 2019 baseline.
The group includes the German insurer Allianz, the US’ largest pension scheme CalPERS and the reinsurance company SwissRe.
The alliance said this ‘unprecedented’ plan enables members to set their own portfolio targets in the first quarter of 2021.
The plan, named 2025 Target Setting Protocol, aims to invest in those companies that will contribute to the energy transition and influence markets and government policies.
Günther Thallinger, Alliance Chair and Member of the Board of Management, Allianz SE, said: “Reaching net zero is not simply reducing emissions and carrying on with the business models of today.
“There are profound changes and opportunities that will come from the net zero economy, we see new business opportunities and strong wins for those who are ready to lead.”