New ‘Net Zero Investment Framework’ seeks to leverage global investors in decarbonization drive

In the UK, a new ‘Net Zero Investment Framework’ provides the first-ever practical blueprint for investors to maximize the contribution they make in tackling climate change and achieving net zero emissions globally by 2050.

The framework has been developed with over 70 global investors, representing more than $16 trillion in assets, through the Institutional Investors Group on Climate Change (IIGCC)1. It provides a comprehensive set of recommended actions, metrics and methodologies, which following finalization, will seek to enable both asset owners and asset managers to effectively become ‘net zero investors’.

Its primary objective is to ensure investors can decarbonize 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 – ensure investors can maximize their impact in driving real-world decarbonization. Four different asset classes – sovereign bonds, listed equities and corporate fixed income and real estate – are covered by the framework, with others to follow.