By Juliette Portalla
(Reuters) – The Net Zero Asset Owner Alliance (NZAOA) said Tuesday that nearly two-thirds of its members have set short-term targets for portfolio emissions reductions in line with limiting global warming to 1.5°C as the clock is ticking on climate change. .
NZAOA, which is made up of 74 investors such as pension systems and insurance companies with combined assets of $10.6 trillion, is helping its members decarbonize their portfolios as part of efforts to combat climate change.
While everyone has committed to doing so by 2050, the group is increasingly asking them to implement short-term goals.
“We have a stipulation that each new individual must set these interim goals within a year,” Guenther Tallinger, head of the coalition, told Reuters.
In its second annual progress report, launched during New York Climate Week, NZAOA said 41 members have set targets to reduce portfolio emissions by at least 22% by 2025 or 49% by 2030, commitments covering $3.3 trillion in assets.
“There is still much to be done,” the group wrote, as it aims to grow to 200 members, or $25 trillion in assets, by 2025.
“While the Alliance pledge now includes $7.1 trillion in assets under management, this amount must grow to make significant progress,” she added.
“The question of whether or not they join us is very simple: ‘Can they commit? ‘” Tallinger said, referring to an “accountability mechanism” that forces companies to make progress to protect their reputation.
The NZAOA, which works with strategic advisors from the World Wildlife Fund (WWF), wants standardized emissions reporting.