The UN-Convened Net-Zero Asset Owner Alliance has released the second edition of its Target Setting Protocol detailing that overall absolute emissions reductions for its 69 asset owners should range between 49-65 per cent or beyond for the period 2020 to 2030.

As reported by our sister title, Insurance Asset Management, the focus of the Protocol is set around portfolio emissions, also known as Scope 3 emissions (or ‘financed emissions’), which typically represent the vast majority of an asset owner’s emissions (95-97 per cent) in their respective portfolios.

Guenther Thallinger, board member Allianz SE & Chair UN-convened Net-Zero Asset Owner Alliance said: “This advanced guidance will help investors already committed to net-zero to take the urgent shorter-term action that climate science demands.

“Where the first edition of this Protocol focused on 2020 to 2025, today’s ambition towards 2030 stresses the need for powerful, credible and rapid action to achieve a net-zero emissions world. Action is needed now, and every company is challenged to follow the lead of Alliance members and adjust business models, develop plans for the transition to a low-carbon, climate-resilient future, and then implement those plans.

“The Alliance Commitment requires its members to publish interim targets on a five-year cycle. Targets must be ambitious enough to signal an Alliance member’s expectations while considering that the real economy is only just beginning its net-zero transition.”

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