ILN launches toolkit to support investors decarbonize portfolios
The Investor Leadership Network (ILN) today released its latest report Climate Change Mitigation and your portfolio: Practical Tools for Investors. The report provides detailed guidance for investors on strengthening climate-related disclosures, focused on decarbonization scenarios in line with the Paris Agreement.
The report has been developed as part of the ILN’s climate change initiative, which focuses on developing tools and resources to help investors understand climate change risks and opportunities across diversified portfolios. It provides information to support investors in evaluating the maturity of companies’ decarbonization scenario analysis and how it aligns with the Paris Agreement and a pathway to limiting the increase in average global temperature to 1.5°C.
As investors work to improve their climate change risk analysis, there is a need for a credible, consistent fact-base. The ILN recognizes that climate scenario analysis is a relatively recent practice and that it is challenging. The new report aims to address some of these challenges and offers a structured approach for investors to evaluate the scenario analysis disclosures of companies.
In addition, this guidance provides a sector-level 1.5°C scenarios across ten sectors including Oil & Gas, Mining, Food and Agriculture, and Transportation.
Amy Hepburn, CEO of the ILN Secretariat, commented: “Creating an ecosystem of stronger climate-related disclosures and recognition of climate risk requires close collaboration between investors, companies across sectors, and regulators. As institutional investors managing over US$5 trillion in assets around the world, ILN members are committed to supporting the ongoing efforts of investors and companies in their goal to fight climate change.”
The ILN hopes to increase the maturity and standardization of the climate data landscape, drive more effective climate-related engagement between companies and investors, and ultimately improve climate resiliency. The ILN believes that investors can lead our economy and society towards better understanding and management of climate risk, enabling action on climate change, and that enhanced disclosure will enable the investment industry to accelerate recognition of climate risks, and the transition towards a more sustainable economy.
This report follows the TCFD Implementation, Practical Insights and Perspectives from Behind the Scenes for Institutional Investors report published September 2019.
Access the full report.
Access the executive summary.
Access the investor guide.