Many investors have pledged high-level support to the goals of the 2015 Paris deal, but the “Net Zero Investment Framework” is the first to lay out the steps they need to take to ensure the commitment is backed up by the necessary action. Specific targets could include increasing the percentage of assets invested in low-carbon passive indexes and ensuring the leaders of investee companies link pay to climate-related targets. While many were useful, the Institutional Investors Group on Climate Change (IIGCC) said its framework was the first to give investors practical guidance on how to both decarbonize portfolios and boost investments in solutions to climate change. Developed with input from 70 global investors, including bond giant PIMCO and Dutch pension investor APG, the plan sets concrete targets at the portfolio and asset class level and also addresses asset allocation, engagement and lobbying. The first phase of the framework, which will now go out to consultation, covers listed equities, credit, sovereign debt, real estate and strategic asset allocation.

Source: Dhaka Tribune August 05, 2020 07:41 UTC