Thirty-three of the world’s largest investors have committed to setting and reporting on 2025 targets to support the transition to net-zero greenhouse gas emissions by 2050. The final Net-Zero Asset Owner Alliance’s Inaugural 2025 Target Setting Protocol raises the curtain on the release of individual member targets.
Individual members of the Alliance begin to publish their own 2025 decarbonization targets within a 16-29 per cent range. Target-setting through the Protocol was developed by members of the Alliance and follows a very ambitious, rigorous and unique approach.
The targets are structured in four pillars: engagement; portfolio decarbonization targets; sectoral targets; and climate positive investments. With asset owners at the pinnacle of the investment universe, establishing visible targets for engagement with asset managers, corporates, industry groups and policymakers, is the most impactful way to influence the real economy towards a 1.5°C global goal.
The Alliance is working alongside UNEP FI initiatives such as the Principles for Responsible Banking’s Collective Commitment for Climate Action (CCCA) and is part of the high-level COP campaign the Race to Zero.
The Protocol covers multiple asset classes and encompasses even the hardest-to-abate sectors. Taking a sectoral approach means that these investors will be stepping up their work to move high-carbon companies to make the changes required for the net-zero transition.