Asset owners can show their commitment to net-zero emissions through an initiative launched Wednesday by Ceres and investor network partners in Asia, Australia and Europe.
So far, 110 investors with a collective $33 trillion in assets are participating in the Paris Aligned Investment Initiative, including the $226.4 billion New York State Common Retirement Fund, Albany. In December, the pension fund committed to a net-zero carbon emissions target by 2040.
The initiative is coordinated by Ceres, the Asia Investor Group on Climate Change, the Institutional Investors Group on Climate Change and the Investor Group on Climate Change.
A similar track for asset managers launched in December includes 30 firms with a collective $9 trillion.
The initiative includes a Net Zero Asset Owners Commitment that asks asset owners to commit to 10 actions to achieve Paris-aligned portfolios, including setting interim reductions targets by 2030 or sooner and transitioning investments to achieve net-zero greenhouse gas emissions by 2050. They will also report annually on strategy and actions taken. Thomas P. DiNapoli, New York Common Fund's sole fiduciary, said in the announcement that actions listed in the commitment exemplify ways investors can protect the long-term value of their portfolios. "We have put the fund in a strong position for a net-zero future and strongly encourage others to do the same," he said.
So far, 21 investors with $1.2 trillion in assets are signatories.
The initiative also offers a net-zero investment framework to give asset owners and managers a methodology for aligning investments with a net-zero future.