Read the updated version of the Net Zero Investment Framework (NZIF) below and have your say in the consultation, open until 24 April. NZIF has become the most widely used guidance by investors that have set voluntary net zero commitments since it was first released in 2021.
Informed by our members and supported by fellow networks in the USA, Asia and Oceania, ‘NZIF 2.0’ aims to make life easier for investors by bringing together the wide range of resources available to them all in one place. Each element supports a unifying goal - to support real economy emissions reductions.
An evolution of the original framework, NZIF 2.0 incorporates some revised target terminology and criteria as well as updated guidance on asset classes. The resource also summarises best practices shared by investors, collected from three years of implementation, converting them into more than 40 potential actions an investor can take.
It references various supplementary guidance and tools which can support its use, designed to be a first port of call rather than a one-size-fits-all approach.
From the beginnings of setting a net zero strategy through to objectives and target setting, analysing asset classes to engaging with assets, information is now more accessible, intuitive and coherent in NZIF 2.0.
Updated asset classes
As well as recently released guidance on private equity and infrastructure, investors will find summaries of the latest guidance on sovereign bonds and real estate with new alignment criteria for both. Real estate investors will also find reference to our guidance on incorporating whole life carbon into assessments.
Private equity and infrastructure have recently been reviewed by working groups and public consultation prior to their release, and so they will not be open to further changes as part of this process. Other notable improvements include new emissions performance criterion for listed equities and corporate fixed income, and new certificate deposits guidance to support net zero cash management.
NZIF 2.0 now offers guidance for most of the major asset classes in an average investor portfolio.
Please read the guidance and share your views in our consultation which will remain open until 24 April.