By Susanna Rust2020-12-11T14:14:00+00:00
An initiative specifically focussed on asset managers getting to net-zero has been launched with 30 founding signatories drawn from across the world.
The launch of the Net Zero Asset Managers initiative comes ahead of the five-year anniversary of the Paris Agreement tomorrow.
Other asset managers are encouraged and expected to join the initiative. Signatories commit to supporting the goal of net-zero greenhouse gas emissions by 2050 or sooner and investing aligned with that goal.
The commitment includes prioritising the achievement of real economy emission reductions within the sectors and companies in which the asset managers invest.
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INANCIAL FIRMS produce very few greenhouse-gas emissions directly, aside from those associated with keeping the lights on and the computers whirring. But the picture changes dramatically when you add “financed emissions”, those associated with a firm’s lending and investing activities. Figures from the few banks and asset managers that disclose them suggest that financed emissions are 100 to 1,000 times bigger than operational ones.
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Financed emissions are now coming under more scrutiny from climate-conscious clients and campaigners, and lenders are hoping to manage the associated reputational and regulatory risks. Green regulation, for instance, could damage the viability of an investment. On November 30th Barclays, a British bank, published plans for its net-zero target. Its goal will be to cut emissions from deals it arranges in the capital markets as well as on its loans.