Net Zero Asset Managers initiative

Who is in scope?

The initiative is open to any asset manager globally that is also a member of one of the Network Partner networks.

How do investors have to consider sustainability in general?

By committing to this initiative, organisations commit to:

1. Work in partnership with asset owner clients on decarbonisation goals, consistent with an ambition to reach net zero emissions by 2050 or sooner across all assets under management (AUM)

2. Set an interim target for the proportion of assets to be managed in line with the attainment of net zero emissions by 2050 or sooner

3. Review their interim target at least every five years, with a view to ratcheting up the proportion of AUM covered until 100% of assets are included

In order to fulfil these commitments, organisations will:

For assets committed to be managed in line with the attainment of net zero emissions by 2050 or sooner (under commitment 2 above)

1. Set interim targets for 2030, consistent with a fair share of the 50% global reduction in CO₂ identified as a requirement in the IPCC special report on global warming of 1.5°C

2. Take account of portfolio Scope 1 & 2 emissions and, to the extent possible, material portfolio Scope 3 emissions

3. Prioritise the achievement of real economy emissions reductions within the sectors and companies in which they invest

4. If using offsets, invest in long-term carbon removal, where there are no technologically and/or financially viable alternatives to eliminate emissions

5. As required, create investment products aligned with net zero emissions by 2050 and facilitate increased investment in climate solutions

Across all assets under management

6. Provide asset owner clients with information and analytics on net zero investing and climate risk and opportunity

7. Implement a stewardship and engagement strategy, with a clear escalation and voting policy, that is consistent with their ambition for all assets under management to achieve net zero emissions by 2050 or sooner

8. Engage with actors key to the investment system including credit rating agencies, auditors, stock exchanges, proxy advisers, investment consultants, and data and service providers to ensure that products and services available to investors are consistent with the aim of achieving global net zero emissions by 2050 or sooner

9. Ensure any relevant direct and indirect policy advocacy they undertake is supportive of achieving global net zero emissions by 2050 or sooner

On which sustainability topics do investors have to report?

As part of their commitment, organisations will publish TCFD disclosures, including a climate action plan, annually, and submit them to the Investor Agenda via its partner organisations for review to ensure the approach applied is based on a robust methodology, consistent with the UN Race to Zero criteria, and action is being taken in line with the commitments made.

Does the initiative define specific sustainability indicators?

The initiative itself does not define specific sustainability indicators or non-financial KPIs for reporting. Instead, as mentioned above, organisations committing to this initiative will publish TCFD disclosures, including a climate action plan, annually.

In a nutshell, the TCFD recommendations are structured around four thematic areas that represent core elements of how organisations operate: