The Institutional Investors Group on Climate Change (IIGCC) has launched, for consultation, a draft investor guide that seeks to provide a practical blueprint to enable investors to align with and more fully contribute to the goals of the Paris Agreement on climate change.
The IIGCC developed the ‘Net Zero Investment Framework’ with over 70 leading global investors representing an aggregate of over USD 16 trillion in assets. The guide is intended to enable investors to adopt a strategy to decarbonize their investment portfolios while increasing investment in climate solutions to help achieve net zero emissions by 2050.
The Framework is “based on the expectation that governments and policy makers will deliver on commitments to achieve the 1.5°C temperature goal of the Paris Agreement.” The IIGCC designed the Framework to help deliver “additional meaningful long-term emission reductions,” overcoming limitations in other approaches “based only on portfolio emissions reduction or portfolio temperature targets,” which allow investors to “technically meet targets while selling the problem to someone else.”
The Framework provides a comprehensive set of recommended actions, metrics, and methodologies to enable both asset owners and managers to become “net zero investors.” It covers four asset classes: sovereign bonds; listed equities; corporate fixed income; and real estate, with other asset classes to follow. The Framework identifies five core components of a net zero investment strategy: governance and strategy; objectives and targets; strategic asset allocation; asset class alignment; and policy advocacy and market engagement.
The Framework is open for consultation until 25 September 2020. Five investors – APG, Brunel, the Church of England Pensions Board, PKA, and Phoenix Group – are testing the Framework by modeling its impact across the performance of their portfolios, collectively valued at USD 1.3 trillion. Results of this analysis will be included in the final Framework, expected to be released later in 2020.
The IIGCC is a European membership body for collaboration on climate change. The organization includes over 240 members, mostly pension funds and asset managers, across fifteen countries, representing over EUR 33 trillion in assets under management. The Framework is a key output of the IIGCC’s Paris Aligned Investing Initiative (PAII), which was established at the request of European asset owners to develop key definitions and concepts relating to the alignment of investment strategies to the Paris Agreement. [Publication: Net Zero Investment Framework for Consultation] [IGCC Press Release]
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
