Paris Aligned Investment Initiative

Net Zero Investment Framework

The Net Zero Investment Framework, published in March 2021, provides a common set of recommended actions, metrics and methodologies through which investors can maximise their contribution to achieving global net zero global emissions by 2050 or sooner. Its primary objective is to ensure investors can decarbonise investment portfolios and increase investment in climate solutions, in a way that is consistent with a 1.5°C net zero emissions future. An ‘investment strategy’ led approach, supported by concrete targets set at portfolio and asset level – combined with smart capital allocation, and engagement and advocacy activity – ensures investors can maximise their impact in driving real-world decarbonisation. Four different asset classes – sovereign bonds, listed equities and corporate fixed income and real estate – are covered by the framework, with others to follow. Five investors will also be putting the framework to the test, by modelling its impact across performance of their real-word portfolios collectively valued at $1.3 trillion. The results of this analysis can be found here. The Framework is intended to be adopted and implemented by investors following a PAII Net Zero Asset Owner Commitment or a Net Zero Asset Managers initiative commitment. The Framework has been developed through the collaborative input of the 110 plus IIGCC members who are participating in PAII. We are grateful for the valuable contributions and insight of the investors that are part of the initiative.

Key resources:

Net Zero Investment Framework - this is the full version of the Framework issued in March 2021. See here for a direct download. Portfolio testing report – this is the accompanying portfolio testing report produced in partnership with planetrics and vivideconomics. See here for a direct download. PAII Asset Owner Commitment – this is the full Paris Aligned Investment Initiative Net Zero Asset Owner Commitment which is signed by investors. See here for a direct download. Supporting presentation - this slide deck helps provide an overview of PAII and detail behind the Net Zero Investment Framework. See here for a slide only version of the presentation and here for a version with accompanying notes. See here to watch our webinar from September 2020, where investors provide an overview of the Framework out for consultation and next steps for IIGCC’s Paris Aligned Investment Initiative. Framework launch press release - see the accompanying announcement here on the launch of the Net Zero Investment Framework, as the first-ever blueprint to help investors become 'net zero investors'. PAII backgrounder - see here for a supporting backgrounder, providing more context on the aims, objectives and deliverables of the PAII initiative.

Supporters