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Report

Net zero investment framework

The Net Zero Investment Framework, has been developed through the collaborative input of the 70 plus IIGCC members who are participating in IIGCC’s Paris Aligned Investment Initiative. It provides a common set of recommended actions, metrics and methodologies through which investors can maximise their contribution to achieving global net zero global emissions by 2050.

Key points

Its primary objective is to ensure investors can decarbonise investment portfolios and increase investment in climate solutions, in a way that is consistent with a 1.5°C net zero emissions future.

An ‘investment strategy’ led approach, supported by concrete targets set at portfolio and asset level – combined with smart capital allocation, and engagement and advocacy activity – ensures investors can maximise their impact in driving real-world decarbonisation.

Four different asset classes – sovereign bonds, listed equities and corporate fixed income and real estate – are covered by the framework, with others to follow. Five investors will also be putting the framework to the test, by modelling its impact across performance of their real-word portfolios collectively valued at $1.3 trillion. The results of this analysis will be launched with the final framework, expected before the end of 2020.