Investors continue to adopt new targets and strategies for pursuing net-zero emissions by 2050 and investing in climate solutions, according to a new report released by the Investor Group on Climate Change (IGCC).
The new report - Zero Emissions/Sustainable Returns - is a practical guide for investors on strategies to pursue net-zero emissions portfolios while ensuring sustainable returns.
The report details current investor thinking, real-world examples of how investors are transitioning to net-zero emissions and the overall state of play in investor practice. It is intended to support investor ambition and accelerate practical action on setting net-zero investment strategies.
“The need to move to net-zero emissions by 2050 to achieve the Paris Agreement goals is now widely acknowledged”, said Emma Herd, Chief Executive Officer of the IGCC.
“We are seeing more governments, companies and investors setting targets to achieve netzero by 2050 or sooner.
“In Australia, the recent ‘black summer’ bushfires have clearly demonstrated the costs and consequences of allowing unchecked global warming. At just one degree of warming, Australian communities have faced frightening heat, drought and fire conditions at an unprecedented scale. This is potentially just a taste of things to come if we fail to follow through on the commitments made under the Paris Agreement.
“Developing practical tools and resources to help accelerate investor action are a core part of mobilising capital to deliver climate solutions and de-risk our economy from the financial and economic risks presented by climate change.”
The report sets out recent examples of institutional investors who are setting targets, developing products and reporting on the outcomes of their climate change investment strategies. This includes working through the very real challenges of setting net-zero targets for a whole portfolio or specific asset classes, and for developing delivery strategies.
“Achieving this will not be easy, but it is essential if we are to hold global warming to less than two degrees and move towards a goal of 1.5 degrees Celsius,” Ms Herd said.