On Wednesday, 05 August 2020, the world gets the first ever “step-by-step plan” that guides “pension funds and others” to have portfolio that is aligned with the “Paris Agreement on climate change”.
Many investors have come forward pledging to support the Paris climate deal signed in 2015, while the “Net Zero Investment Framework” happens to be the first one giving step by step methods of ensuring that the necessary actions meet the above mentioned commitment.
Among specific targets one could focus on “increasing” the “low-carbon passive indexes” assets percentage. In the words of the chief executive officer of IIGC, Stephanie Pfeifer:
“Countries, cities and companies around the globe are committing to achieve the goal of net zero emissions and investors need to show similar leadership”.
“The willingness is there, but until now the investment sector has lacked a framework enabling it to deliver on this ambition.”
Following the Paris climate deal of 2015, investors came out with several initiatives for better managing the “climate-related risks”. Although many of these “were useful”, the “Institutional Investors Group on Climate Change”, in short IIGCC, however, informed that the framework that it provided is the first to present “practical guidance” for the investors in decarbonising portfolios and boosting investments to find solutions to climate change.
Seventy investors from across the globe contributed in its developed, while the list include PIMCO and APG. Reuters added that the plans creates “concrete targets at the portfolio and asset class level and also addresses asset allocation, engagement and lobbying”.
The framework’s “first phase” covering “listed equities, credit, sovereign debt, real estate and strategic asset allocation” will be going for consultation, while another later phase will address “private equity and infrastructure”.
References:
reuters.com
Many investors have come forward pledging to support the Paris climate deal signed in 2015, while the “Net Zero Investment Framework” happens to be the first one giving step by step methods of ensuring that the necessary actions meet the above mentioned commitment.
Among specific targets one could focus on “increasing” the “low-carbon passive indexes” assets percentage. In the words of the chief executive officer of IIGC, Stephanie Pfeifer:
“Countries, cities and companies around the globe are committing to achieve the goal of net zero emissions and investors need to show similar leadership”.
“The willingness is there, but until now the investment sector has lacked a framework enabling it to deliver on this ambition.”
Following the Paris climate deal of 2015, investors came out with several initiatives for better managing the “climate-related risks”. Although many of these “were useful”, the “Institutional Investors Group on Climate Change”, in short IIGCC, however, informed that the framework that it provided is the first to present “practical guidance” for the investors in decarbonising portfolios and boosting investments to find solutions to climate change.
Seventy investors from across the globe contributed in its developed, while the list include PIMCO and APG. Reuters added that the plans creates “concrete targets at the portfolio and asset class level and also addresses asset allocation, engagement and lobbying”.
The framework’s “first phase” covering “listed equities, credit, sovereign debt, real estate and strategic asset allocation” will be going for consultation, while another later phase will address “private equity and infrastructure”.
References:
reuters.com
