Video: Big investor alliance sets five-year GHG target

An international group of 30 institutional investors representing US$5 trillion in managed assets promises to cut greenhouse gas (GHG) emissions in its portfolios by nearly 30% in five years.

The United Nations-convened Net-Zero Asset Owner Alliance says it’s delivering on a bold commitment to transition its investment portfolios to net-zero GHG emissions by 2050, including investing in electrified transport and renewable energy and helping lead others in driving sustainable economies.

That means united investor action to align portfolios with a 1.5°C scenario, addressing Article 2.1c of the Paris Agreement.

The group, which includes investors from Allianz and the Church of England, formed last year and has just announced its 2025 Target Setting Protocol, which includes reducing emissions across members’ portfolios by 16 to 29% of 2019 levels by 2025 and setting intermediate targets every five years.

Investors will pinpoint the 20 companies most responsible for their portfolios’ emissions and also set targets for highly emitting sectors like oil and gas, transport, and utilities.

The group encourages companies to share regular reports on climate action and their plans to green their business.

The alliance will also release annual reports, work with other like-minded organisations such as Climate Action 100+, and it aims to expand membership to 200 or the assets under its control to US$25 trillion.