The Net-Zero Asset Owner Alliance, a group of major institutional investors managing $9.5 trillion, has released its most comprehensive Target-Setting Protocol. For the first time, the protocol extends to private assets and aims to halve emissions by 2030 and achieve net-zero emissions by mid-century. Members are required to set 40 to 60 per cent GHG emissions reduction targets by 2030 compared to 2019 levels. The protocol also introduces sovereign debt emissions assessment through the Assessing Sovereign Climate-related Opportunities and Risks (ASCOR) database pilot. This initiative aims to enhance understanding of climate alignment and ensure climate-compliant asset procurement. The protocol signifies a united front among 89 major institutional investors, including industry titans like CalPERS, CDPQ, Nippon Life, and Axa.

Source: ESG News