Seven asset owners, including Europe’s largest public sector pension fund ABP, have committed to net zero emission portfolios by 2050 or sooner.
Signing up to the Paris Aligned Investment Initiative’s net zero asset owner commitment, the latest additions – which also include National Trust and South Yorkshire Pension Fund – bring total assets under management in the group to $1.9 trillion (€1.6 trillion).
According to their commitments to the group, the asset owners will seek to decarbonise their investment portfolios by 2050 or before, as well as increase investment in climate solutions in line with a 1.5°C net zero emissions future.
They must also set interim targets for decarbonisation and investment, as well as undertake policy advocacy and engagement, and voting in line with net zero goals.
The initiative was established by the Institutional Investors Group on Climate Change (IIGC) in 2019.
IIGC chief executive Stephanie Pfeifer said: “Net zero commitments are vital but must be matched with robust action plans. Growing uptake of the Net Zero Investment Framework ensures more investors are now able to maximise their contribution to the energy transition by adopting a net zero investment strategy.”
The latest signatories to the initiative also include Places of Historic Interest or Natural Beauty, the Church of Sweden, Wiltshire Pension Fund and TPT Retirement Solutions.
The seven asset owners represent a collective $617 billion in assets.
Loek Sibbing, board member, ABP, said: “Climate change is one of the biggest issues facing the world today.
“Much depends on standards to be able to steer in the right direction. The Net Zero Investment Framework commitment will help ABP on our pathway to an effective net zero investment strategy,” Sibbing added.
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