Investor coalition unveils climate targets

2nd November 2020

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Janet Nuttall

A group of 30 investors with $5trn in assets under management has agreed to a series of decarbonisation targets that will align their portfolios with the Paris Agreement during the next five years

The “transparent and unique“ goals will force thousands of companies owned by members of the UN-convened Net-Zero Asset Owner Alliance to make deep emission cuts if they are to avoid divestment.

The investors have agreed to reduce their portfolio emissions by 6% to 29% by 2025, before transitioning to net-zero by 2050. Several investors will set large reduction targets next year; those that have already made substantial progress in their journey to net-zero, or face geographic or policy constraints, will make lower cuts.

The alliance explained that engagement with investee companies is a core element in assuring that portfolios transition to net-zero and have an impact on the economy. “Alliance members start out by changing themselves and then reach out to various companies to work on the change of their businesses,“ said chair G√ºnther Thallinger.

“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.“

Image credit: iStock

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