Monday 29 November 2021

‘Net zero potential lies with world’s 100 largest asset owners’

The world’s 100 largest asset owners, worth more than $23 trillion (£17.2tn), hold the most influential capital on the planet and therefore the key to unlocking net zero potential.

That’s the claim of a new study by Thinking Ahead Institute (TAI), which has found that pension funds make up most of this, holding 58.1% of global assets.

The research states that out of these 100 asset owners, only 14 are committed to achieving net zero and out of the top 20, there are only three.

It is calling for asset owners to urgently take charge of the climate crisis by better investing their capital in sustainability and climate-mitigating measures – stressing they ‘hold the keys to the castle’.

The report reveals that if ‘a torrent of net zero aligned capital’ is released it could not only have unprecedented impacts on progression towards a net zero world but also boost revenue streams in the long run.

Roger Urwin, Co-Founder of TAI, said: “This relatively small group of investors are right on the front line of the investment community’s fight to become net zero and their power is even more concentrated among the top 20, which are responsible for nearly $13 trillion (£9.7tn).

“The research highlights how some asset owner groups have attempted to overcome these impediments by ‘maturing’ their governance, investment and sustainability models and revamping their organisational purpose and architecture.

“As part of this they have built their capacity to innovate in readiness for the transformational change that is imminent and other asset owners should take note.”