Institutional investors developing climate-action plans with the goal of net-zero emissions by 2050 have a new framework for navigating expectations and climate change initiatives, the Investor Agenda said Thursday.
The Investor Climate Action Plans Expectations Ladder summarizes key actions investors can take to tackle the climate crisis in four areas: investment, corporate engagement, policy advocacy and investor disclosure.
The framework can help investors assess their current approach to managing climate change risk and opportunity, create or augment a climate action plan, and communicate with stakeholders.
A companion guidance piece helps investors assess their current efforts and recommends actions to make further progress.
According to the Investor Agenda, the expectations framework is relevant to all institutional investors, including asset owners, and active and passive asset managers.
The founding partners of The Investor Agenda are seven major groups working with investors: Asia Investor Group on Climate Change, CDP, Ceres, Investor Group on Climate Change, Institutional Investors Group on Climate Change, Principles for Responsible Investment and UNEP Finance Initiative.
"All investors need to take action. The ICAP expectations define the practical steps required to set and deliver on clear plans to achieve their goals, whether they are just getting started or well on the way to being aligned with the goals of the Paris Agreement," said Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change, in a news release.
Rebecca Mikula-Wright, executive director of the Asia Investor Group on Climate Change, said in the release that it will help Asian investors take meaningful action to reduce climate-risk exposure and increase allocations to transitional investment solutions needed to address the climate crisis.
"By publishing a clear and robust climate-action plan using the ICAPs framework, and acting on it," she said, "Asian investors can be better positioned to seize the enormous investment opportunities that are being created by the transition to net zero."