Investing in climate solutions: IIGCC supplementary guidance

This supplementary guidance supports investors in scaling investment in climate solutions – activities, goods or services that, according to credible pathways, must increase significantly to enable the global economy to reach net zero.

The supplementary guidance aims to help investors:

• Define what can be considered as a climate solution.
• Develop a coherent, portfolio-level approach to climate solutions investment.
• Develop more granular asset class-specific approaches to climate solutions investment.

To support implementation, the guidance identifies portfolio- and asset class-level levers of influence, and introduces a three-step approach that can be applied across asset classes:

1. Classify climate solutions based on credible net zero pathways.
2. Identify relevant metrics per asset class.
3. Aggregate metrics to the portfolio level.

The guidance also outlines how investors can address the emissions associated with climate solutions investment by having an alignment-oriented net zero strategy and introducing the concept of STEM emissions.

This paper was developed with input from IIGCC members through the climate solutions working group and reflects the latest thinking on how investors can play a leading role in financing the transition to a net zero economy.