This guidance aims to support investors who want to explicitly consider the nuances associated with allocating towards externally managed funds within their net zero investment strategies.
'Target setting and implementation guidance for externally managed funds' was developed in response to investor feedback. It builds on the Net Zero Investment Framework's principle to be an iterative ‘living document’ based on investor experience.
It is seen as a future integral complementary component to the Net Zero Investment Framework 2.0, published in June 2024.
This guidance has been designed for investors who either fully or partially allocate to externally managed funds and is specific to their position in the financial value chain. It is especially suited for asset owners with less capacity, such as family offices and endowments.
A consultation version has been produced with the support of the IIGCC Externally Managed Funds Working Group and has been approved for consultation by network partners of the Paris Aligned Investment Initiative. We now invite feedback.
This supplementary guidance is open for consultation until 12 September 2025.
We encourage everyone to submit their consultation feedback via this online form. We look forward to your insights and contributions.