Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

World's first 'Net Zero Investment Framework' launched

Open-access content Wednesday 5th August 2020
factory_shutterstock_109602587.png

A coalition of institutional investors with more than $16trn (£12trn) in assets under management has today launched the first-ever practical blueprint to help investors deliver net-zero emissions globally by 2050.

The 'Net Zero Investment Framework' provides a comprehensive set of recommended actions, metrics and methodologies to decarbonise investment portfolios and increase funding for climate solutions.

It has been developed by 70 global investors, and covers four different asset classes: sovereign bonds, listed equities, corporate fixed income and real estate, with more to follow.

Five pension funds will test the framework by modelling its impact across the performance of their real-word portfolios, collectively valued at $1.3trn, with the results expected before the end of 2020.

“Countries, cities and companies around the globe are committing to achieve the goal of net-zero emissions and investors need to show similar leadership,” said Stephanie Pfeifer, CEO of the Institutional Investors Group on Climate Change, which convened the investors.

“The willingness is there, but until now the investment sector has lacked a framework enabling it to deliver on this ambition. The race is now on in the run-up to COP26 for asset owners and managers to show they will be net-zero investors.”

APG, Brunel, the Church of England Pensions Board, PKA and Phoenix Group are the five pension funds that will test the framework over the next few months.

The focus on real-world decarbonisation overcomes limitations of other approaches – based only on portfolio emissions reduction or portfolio temperature targets – which leave room for investors to technically meet targets while selling the problem to someone else.

More than 25 methodologies and tools, to support alignment with the Paris Agreement and net-zero emissions, have been analysed and reviewed in the blueprint's formulation.

Five core components help define its investment strategy, covering objectives and targets, strategic asset allocation and asset class alignment, alongside policy advocacy, investor engagement activity and governance. 

However, the framework highlights a range of outstanding sectoral challenges and complexities, and input from a wide range of stakeholders will be sought to helping validate and strengthen the work to date by investors.

“Investors need to play a central role if the world is to meet the Paris commitment of limiting climate change to below two degrees,” said Laura Chappell, CEO of the Brunel Pension Partnership. 

“The Net Zero Investment Framework is of critical importance because it answers the fundamental and urgent question of what a Paris-aligned portfolio actually looks like.”

 

Author: Chris Seekings

Image credit: Shutterstock

You may also be interested in...

web_co2_shutterstock_96727612_0_0.png

UK pension schemes face fines for failing to disclose climate risks

The UK's 100 largest occupational pension schemes will be forced to disclose how their investments are exposed to climate-related financial risks, under plans unveiled by the government yesterday.
Thursday 27th August 2020
Open-access content
iStock-125143761.jpg

ESG funds explode in popularity during COVID-19 crisis

Each of the last four months has set a record for investment into environmental, social and governance (ESG) equity funds, new analysis has found.
Wednesday 12th August 2020
Open-access content
istock-1136407887.jpg

Ethical investment funds flourish during COVID-19 crisis

Ethical investment funds have outperformed their non-ethical counterparts during the coronavirus crisis, research by Moneyfacts has uncovered.
Tuesday 28th July 2020
Open-access content
iStock-1155242798.jpg

ESG investments seen as safe havens for most investors

Investments with strong environmental, social, and governance (ESG) credentials are now seen as safe havens by the majority of high-net-worth investors, new research suggests.
Thursday 23rd July 2020
Open-access content
iStock-696880830.jpg

IFoA and IEMA publish new climate risk disclosure guide

The Institute and Faculty of Actuaries (IFoA) and sustainability body IEMA have today published a new guide to help companies engage with the Task Force on Climate-related Financial Disclosures (TCFD).
Thursday 9th July 2020
Open-access content
iStock-1197768406.jpg

Global M&A insurance deals rise

Mergers and acquisitions (M&A) in the global insurance industry rose over the first six months of 2020, but are forecast to drop off over the second half of the year.
Tuesday 18th August 2020
Open-access content

Latest from Pensions

ers

By halves

Reducing the pensions gap between men and women is a work in progress – and there’s still a long way to go, with women retiring on 50% less than men, says Alexandra Miles
Thursday 2nd March 2023
Open-access content
rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
KV

Liability-driven investments: new landscape

What now for liability-driven investments, after last year’s crash in the market? Pensions experts Rakesh Girdharlal and Moiz Khan say it should lead to a more balanced approach
Wednesday 1st February 2023
Open-access content

Latest from Investment

KV

Liability-driven investments: new landscape

What now for liability-driven investments, after last year’s crash in the market? Pensions experts Rakesh Girdharlal and Moiz Khan say it should lead to a more balanced approach
Wednesday 1st February 2023
Open-access content
cj

Natural capital investing

Chris Howells and Andrew Dreaneen discuss how today’s investments in natural capital profit portfolios as well as the planet and humanity
Wednesday 1st February 2023
Open-access content
t

Options open on making portfolios more climate-friendly

Michael Sher sets out the option savailable to investors who are looking to improve their portfolios’ climate credentials
Wednesday 2nd November 2022
Open-access content

Latest from Global

rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
ULH

Growth of the profession in Zambia

One of only three Fellows in Zambia, Mulenga C Mutati anticipates exciting growth in the country’s actuarial sector
Wednesday 1st February 2023
Open-access content
cj

Natural capital investing

Chris Howells and Andrew Dreaneen discuss how today’s investments in natural capital profit portfolios as well as the planet and humanity
Wednesday 1st February 2023
Open-access content

Latest from Environment

rdth

Make My Money Matter's Tony Burdon on the practical power of sustainable pensions

Years working in international development showed Tony Burdon, head of Make My Money Matter, that sustainable pensions can harness trillions of pounds to build a better world – at a scale governments and charities can’t. He talks to Travis Elsum
Wednesday 1st March 2023
Open-access content
ty

Data detective

Heard about the chatbot ChatGPT? Artificial intelligence is advancing rapidly, says Arjun Brara – and could soon be used to refine ESG ratings and expose greenwashing
Wednesday 1st March 2023
Open-access content
iugu

Interview: chemist and climate expert Sir David King on how actuaries can save the Arctic

Actuaries can save the Arctic, according to esteemed chemist and climate-change expert Sir David King. He tells Alex Martin that risk management is as relevant to preserving the planet as groundbreaking science
Wednesday 1st February 2023
Open-access content

Latest from News

tf

New online forum 'IFoA communities' – now live

IFoA communities is your new online digital community. Here’s how to get started on the platform
Thursday 2nd March 2023
Open-access content
uh

Climate risk course sees new growth

In April, the Climate Risk and Sustainability course will be one year old. During its first year, we welcomed 155 participants and awarded 148 certificates. Members from more than 19 countries came together at the seminars to discuss and share what they had learnt.
Wednesday 1st March 2023
Open-access content
uh

Actuarial Profession Standard Z1: have your say

The IFoA is consulting on proposals to introduce a revised Actuarial Profession Standard (APS) Z1 on ‘Duties and responsibilities of members undertaking work in relation to UK trust-based pre-paid funeral plans’. APS Z1 sets out specific ethical and professional obligations that apply, in addition to the Actuaries’ Code, for members providing advice relating to funeral plan trusts.
Wednesday 1st March 2023
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Leading Insurer/Asset Manager – Pricing Actuary (Mortgages)

London (Greater)
Competitive
Reference
148750

Senior Consultant - Risk Settlement - Any UK Location - Up to £100,000 plus bonus

London / Manchester / Edinburgh / Remote
Up to £100,000 + Bonus
Reference
148832

Finance Transformation Actuarial student/Qualified Actuary

London (Central)
£50,000 - £75,000 depending on experience
Reference
148830
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ