Stockholm (NordSIP) – The Institutional Investors Group on Climate Change (IIGCC) launched a consultation on a draft Net-Zero investment Framework on August 5th. The framework was developed with the support of over 70 global investors, representing more than $16 trillion in assets.
The IIGCC is a European organisation pushing for investor collaboration on climate change and representing investors seeking a low carbon future. The group has more than 240 members, mainly pension funds and asset managers, across 15 countries, with over €33 trillion in assets under management.
The document aims to provide a set of recommended actions, metrics and methodologies to enable asset owners and asset managers to decarbonise investment portfolios and increase investment in climate solutions consistent with a 1.5°C net zero emissions future. The draft framework incorporates definitions used in the EU Taxonomy. The IIGCC hopes it will help build momentum in the run-up to next year’s UN COP 26 climate talks in Glasgow.
“Countries, cities and companies around the globe are committing to achieve the goal of net-zero emissions and investors need to show similar leadership,” explains Stephanie Pfeifer, CEO, Institutional Investors Group on Climate Change. “The willingness is there, but until now the investment sector has lacked a framework enabling it to deliver on this ambition. As we work towards investors adopting the framework before the end of the year, the race is now on in the run-up to COP26 for asset owners and managers to show they will be net-zero investors.”
“The next decade is absolutely critical to achieving the Paris Agreement goals and avoiding catastrophic climate change,” adds Vicki Bakhshi, Director, Responsible Investment at BMO Global Asset Management. “Investors need to play their part, and for our efforts to be effective, it’s vital that we have a shared understanding of what Paris alignment means, and are able to articulate that to our clients. We are proud to be involved in the framework issued today and to play our part in the wider investor movement towards making finance a force for good.”
The draft framework is open for feedback through this link until September 25th 2020.