Investor practices programme
Derivatives and Hedge Funds Discussion Paper
IIGCC has published a discussion paper to address the challenges raised when considering incorporating derivatives and hedge funds into the Net Zero Investment Framework.
Because derivatives are traded across most asset classes, for those with existing net zero commitments, the document considers how portfolio measurement, asset alignment and portfolio management would be affected by the inclusion of derivatives and hedge funds. Consistent with the approach for other parts of the Framework, the intention is for the recommendations to be practical, setting out steps that investors can take now.
The discussion paper:
- Shows how investors’ strategy towards net zero can be enhanced through the use of derivatives
- Considers possible approaches to account for derivatives within portfolios aligning to net zero
- Proposes potential solutions to the challenges of reporting.
Download the paper below.
IIGCC is encouraging feedback on the proposals of the discussion paper here.
IIGCC Response to FCA Consultation on Sustainability Disclosure Requirements and investment labels
IIGCC – CLG Europe – Climate Group initiated letter on EU Energy Performance of Buildings Directive (EPBD)
IIGCC letter to European Council on Energy Security
Bondholder Stewardship Position Statement