A group of twelve investment consultants responsible for advising on assets over $10 trillion launched a Net Zero Investment Consultants Initiative (NZICI) to align their operations and advisory services with 1.5°C emission reduction target in line with the Paris Agreement, the consultants said in a statement Monday.
UK consultancy Barnett Waddingham, investment consultancy firm bfinance, US-based investment firm Cambridge Associates, blockchain platform Cardano, investment consultancy Frontier Advisors, independent consulting services firm Hymans Robertson, investment management company JANA, UK-based advisory firm Lane Clark & Peacock (LCP), investment group Meketa, Redington investment consultancy, British multinational risk management, insurance brokerage and advisory company Willis Towers and Watson, and investment advisory company Wilshire are the twelve founding signatories of the initiative.
The initiative, which has been led by some members of the Investment Consultants Sustainability Working Groups in the UK and US, is endorsed by the United Nations Race to Zero campaign and supported by the Principles for Responsible Investment (PRI), the statement said.
'We are a group of twelve investment consultants committed to supporting our clients in achieving the goal of global net zero greenhouse emissions by 2050. We help our clients prioritize real economy emissions reductions, reflecting the interim target of 50% global emissions reduction by 2030 or sooner in alignment with objectives set out in the Paris Agreement,' the statement read.
The consultants said that they are committed to implementing a series of bold actions by outlining their commitments in a number of points.
The group committed to integrating advice on net zero alignment into their investment consulting services as soon as practically possible and within two years of making the commitment.
The investment risks from climate change will be identified and clients will be supported in developing policies that align their portfolios to a net zero pathway.
The consultants committed to supporting efforts to decarbonize the global economy by helping their clients prioritize real economy emissions reductions with a target of a 50% global emission cut by 2030 or sooner.
The NZICI also committed to set reduction targets across all their operational emissions in line with 1.5°C and to collaborate with regulators and policymakers to facilitate the transition to net zero carbon emissions.
'To ensure accountability, we will report progress by our firm against the commitments made here at least annually in the public domain,' it said in the statement.
By Nuran Erkul Kaya