Asset managers responsible for over $9 trillion of investments under management around the globe have pledged to support a goal of net zero greenhouse gas emissions by 2050 or sooner, in line with the Paris Accord target to limit Earthâs warming to 1.5°C.
The mostly non-U.S. signatories, announced Friday, also set interim targets for 2030, and will take account of portfolio Scope 1 and 2 emissions and, to the extent possible, material portfolio Scope 3 emissions, they said. Scope 1 emissions are the pollution directly released by a source; scope 2 covers power usage and scope 3 refers to the emissions of companies, in a supply chain, for instance, that the primary entity may not have direct control over.
By Susanna Rust2020-12-11T14:14:00+00:00
An initiative specifically focussed on asset managers getting to net-zero has been launched with 30 founding signatories drawn from across the world.
The launch of the Net Zero Asset Managers initiative comes ahead of the five-year anniversary of the Paris Agreement tomorrow.
Other asset managers are encouraged and expected to join the initiative. Signatories commit to supporting the goal of net-zero greenhouse gas emissions by 2050 or sooner and investing aligned with that goal.
The commitment includes prioritising the achievement of real economy emission reductions within the sectors and companies in which the asset managers invest.