Wednesday 10 March 2021

Global framework launched to help investors go net zero

The ‘Net Zero Investment Framework’ has been launched by the Institutional Investors Group on Climate Change (IIGCC) to increase investors’ contributions to the decarbonisation of the global economy in the battle against climate change.

The IIGCC reveals that the framework will ensure investment portfolios are aligned with net zero emissions and the goals of the Paris Agreement - it has partnered with various investor groups in the venture, which will be published worldwide to shift global investment towards a net zero strategy.

The launch has seen 21 asset owners worth a combined $1.2 trillion (£865tn) commit to achieving net zero alignment by 2050 or sooner. The IIGCC states that 35 investors managing $8.5 trillion (£6.1tn) in assets are already putting the framework to use.

The IIGCC expects its framework to be included in the United Nation’s Race to Zero campaign, following the completion of an ongoing independent assessment process.

Stephanie Pfeifer, CEO of the IIGCC, said: “The global investment community has been called on to play its part in the transition to net zero and it is answering that call.

“This new swathe of net zero commitments from asset owners demonstrates the growing determination from investors to make important decisions to support a net zero and resilient future.

“Commitments are vital but only meaningful for the long-term when realised. The net zero transition itself requires an ongoing transition from making commitments to delivering impact. The ‘Net Zero Investment Framework’, developed with and for investors, is a blueprint for action that will enable and support investors in reaching these goals.”