01 February 2023

UN EP FI: Net-Zero Asset Owner Alliance raises expectations for members’ real economy impact with updated Protocol

• Third edition of Target-Setting Protocol published, setting out pathway to reducing portfolio emissions for 84 major institutional investors including Aviva, CDPQ, and Dai-ichi Life
• Alliance incorporates principles on Just Transition for target achievement while barring carbon removals

31 January 2023, Geneva: Today, the UN-convened Net-Zero Asset Owner Alliance releases a significant update to its Target Setting Protocol, ratcheting up scope and coverage for its 84 members in its third edition of the document.

Investment portfolio emissions typically represent the vast majority of an asset owner’s emissions. The latest Protocol expands its methodology and clarifies its expectations to members, ensuring they set short-term decarbonisation targets that put them on a pathway to reaching net-zero greenhouse gas (GHG) emissions in their investment portfolios by 2050.

The Alliance’s latest Protocol demonstrates that its members remain steadfastly committed to achieving net zero and aligning with 1.5°C pathways with no or limited overshoot.

Based on the Intergovernmental Panel on Climate Change’s (IPCC) most recent pathways, the Alliance identified emissions reduction requirements for sub-portfolio targets in the range of -22% to -32% by 2025 and -40% to -60% by 2030.

Günther Thallinger, Board Member Allianz SE and Alliance said:

“The Alliance continues to enhance depth and coverage with each edition of the Target Setting Protocol, aiming to build a coherent, consistent trajectory aligned to the demands of latest climate science. We show that working towards net zero is possible. It is a matter to decide to do so.

 

We are observing a divergence of real-economy emission pathways and scientific pathways for limiting temperature rise to 1.5C. With this Protocol the Alliance increases expectations for its members and calls on policymakers and corporates to move in line with science.”...

 more at UNEP FI

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