There is recognition that transitioning to a low carbon world is a long and challenging process, and companies need to have the right incentives to make the required changes. We went through the same exercise and took the first steps to an effective transition.
Investors can craft a net zero investment strategy through a combination of engagement, exclusions and an intelligent asset allocation approach. Most net zero frameworks will pull on these levers to varying extents to drive change in portfolio companies. We discuss these levers and how State Street Global Advisors can help with the implementation of portfolio net zero objectives from various angles.