Stockholm (NordSIP) – The Net-Zero Asset Owner Alliance, an UN-convened network of asset owners, has published its “Draft 2025 Target Setting Protocol”, which is now open for public consultation until November 13th, 2020.
The Alliance is a group of 30 of the world’s largest investors, including Alecta, AMF, Folksam, Nordea Life and Pension, PensionDanmark, PFA and Storebrand. The members are responsible for US$5 trillion in AUM and have committed to reducing carbon emissions and becoming carbon neutral by 2050.
The Protocol outlines how each member will set a target, achievable in the next five years. Alliance members have used IPCC 1.5C no and low pathways to inform their targets under the Alliance 2025 Protocol, which carefully balances scientific ambition, active ownership engagement, and divestment constraints. Quantitatively, at the sub-portfolio level, the Protocol set a specific band for emissions reductions targets by 2025.
“Where sufficient data exists, Alliance members should set targets across their corporate equity, corporate debt and real estate portfolios. The Alliance assessed the IPCC’s 1.5°C pathways7 and identified an asset class-level emissions reduction target range of -16% to -29% by 2025,” the protocol specifies.
On the engagement front, Alliance members also have their work cut out, according to the draft document. “Individual Alliance members should identify either the top 20 emitters or those responsible for 65% of their portfolio emissions which do not already have Paris-Aligned business transition commitments and set either Direct, Collective, or Asset Manager action targets to engage the identified group of high emitting companies.”
On October 21st, a webinar guided members of the public through the details of the Protocol and answered questions from attendees.
Feedback can be provided online until the deadline. The form can be downloaded here. Interested parties may direct their media queries to Oliver Wagg and their inquiries on the content of the Protocol to Jesica Andrews.