Thursday 13 May 2021

TIAA commits to 2050 net zero goal on $280bn investment account

Financial services company TIAA has announced its commitment to achieving net zero carbon emissions in its General Account by 2050.

The $280 billion (£199bn) insurance investment account is expected to significantly reduce the carbon footprint of its investments and balance any remaining emissions with investments in projects that remove carbon.

The General Account will increasingly seek out investments in climate solutions, such as holdings in renewable energy, energy efficient real estate and other companies making the transition to a low carbon economy.

Nature-based solutions including afforestation, reforestation and sustainable farming will also contribute towards achieving net zero carbon emissions.

TIAA will also implement five-year interim targets leading up to 2050, with the first target set for 2025.

The scope and level of emissions reduction for each interim target will be tied to a variety of factors, including climate data availability, results of ongoing climate scenario analyses, prevailing market conditions, current and future regulatory environments and best practices observed among peers with similar net zero goals.

TIAA President and CEO Thasunda Brown Duckett said: “We believe climate risk is an investment risk that we must manage over time so this pledge is an affirmation of our responsibility to achieve the best possible investment outcomes for our clients.

“As an active manager of a diversified investment account, we will get to net zero over time through investment selection, portfolio repositioning and continued engagement with companies and carbon producers to reduce emissions around the world.”