{"id":1995,"date":"2022-09-21T01:31:53","date_gmt":"2022-09-21T05:31:53","guid":{"rendered":"https:\/\/investorleadershipnetwork.org\/?p=1995"},"modified":"2022-09-21T08:52:23","modified_gmt":"2022-09-21T12:52:23","slug":"new-net-zero-investor-playbook-highlights-institutional-investors-greatest-challenges-to-transitioning-portfolios","status":"publish","type":"post","link":"https:\/\/investorleadershipnetwork.org\/en\/new-net-zero-investor-playbook-highlights-institutional-investors-greatest-challenges-to-transitioning-portfolios\/","title":{"rendered":"New Net Zero Investor Playbook from Investor Leadership Network Guides Asset Owners and Asset Managers Through Portfolio Transitions"},"content":{"rendered":"

Investor Leadership Network\u2019s new Net Zero Investor Playbook offers an inventory of approaches institutional investors are taking to transition investing and highlights key challenges<\/em><\/p>\n

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TORONTO | Sept. 21, 2022 \u2013\u2013 The Investor Leadership Network (ILN) launched today a new resource to provide practical assistance to investors and their stakeholders to operationalize their net zero commitments. Created with the support of KPMG LLP, the Net Zero Investor Playbook<\/u> inventories institutional investors\u2019 current approaches to and highlights the complexity of climate transition investing.<\/p>\n

Global organizations have developed a wide range of net zero frameworks, methodologies and tools to help investors design and implement their net zero transition programs. The continuously expanding collection of resources and concurrent advances in underlying climate models, however, have caused some confusion on how best to position portfolios and engage with portfolio companies to deliver on real world carbon emissions reduction.<\/p>\n

\u201cInstitutional investors have a significant role to play in financing long-term, real economy emissions reductions, while also reducing their portfolios\u2019 reported emissions in the near term. This can be a tough balancing act,\u201d ILN CEO Amy Hepburn says, \u201cso we\u2019re thrilled to provide investors with guidance on how they might begin to navigate the complexity of transition investing.\u201d<\/p><\/blockquote>\n

The Net Zero Investor Playbook summarizes of the wide range of approaches to transition investing that investors are taking and categorizes them into four themes:<\/p>\n

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  1. Portfolio emissions forecasting and target setting<\/li>\n
  2. Alignment with broader portfolio construction and risk parameters<\/li>\n
  3. Portfolio transition taxonomies<\/li>\n
  4. Portfolio holdings\u2019 transition capacity metrics.<\/li>\n<\/ol>\n

    Within each of the four themes, the Playbook synthesizes the current landscape of relevant investor-specific frameworks and methodologies, the related implementation challenges being experienced by investors, and anticipated enhancements to available guidance that will assist investors in moving forward. To complement the report\u2019s analysis, case studies from individual ILN members on their customized implementation approaches are featured.<\/p>\n

    The Playbook is the ILN Climate Change Advisory Council\u2019s fourth open-source resource created by investors, to address various aspects of incorporating climate change risks and opportunities into investment processes.<\/p>\n

    Maria Montero, Principal in CPP Investment Board\u2019s Sustainable Investment Group and Co-Lead of ILN\u2019s Climate Change Committee says, \u201cWe believe navigating the risks and opportunities presented by the whole economy transition required by climate change will be a defining challenge of the 21st<\/sup> century. Investors can play an active role in financing real economy emissions reductions and as a result reduce financed emissions. This report draws on practical case studies from ILN\u2019s membership to provide a helpful overview of approaches that long-term investors, like us, can take to steward our portfolios to net zero.\u201d<\/p><\/blockquote>\n

    Nathalie Wallace, Global Head of Sustainable Investing and Co-Lead of ILN\u2019s Climate Change Committee adds, \u201cThis report outlines the challenges and key considerations investors need to take into account as they embark on the Net Zero journey. Our work with clients shows that it remains a path riveted with uncertainties and critical decisions. But this Playbook will help investors in their decision-making process to reach their dual objectives of decarbonizing and positioning portfolios to benefit from the powerful investment opportunities driven by the transition to a net zero economy.\u201d<\/p><\/blockquote>\n

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