The New Zealand Aotearoa Investor Coalition for Net Zero
The New Zealand Aotearoa Investor Coalition for Net Zero is an initiative that aims to accelerate action by asset owners and fund managers to reduce the emissions of their funds. The coalition will reach out across the finance sector, encourage funds to make commitments, provide support, and highlight net zero pledges to the media, government and the public.
Climate change is now well-established as a relevant and urgent challenge to the finance sector. It is not only systemic risk to economic stability and investment returns but also presents an opportunity to the finance sector to become part of the solution to the mounting social and ecological crisis.
International action is underway. The world’s largest global asset owners and fund managers have signed up to targets to reduce their greenhouse gas emissions to zero by 2050. Pledges now amount to over $43 trillion under the Net Zero Asset Manager’s initiative. In addition, a range of other initiatives exists, include the UN-convened Net Zero Asset Owners initiative, the Net Zero Insurance Alliance, the Net Zero Underwriting Alliance, Net Zero Banking Alliance and the Race to Net Zero. Comparable pledges can be made through the Principles for Responsible Investment (PRI) and B Corps 2030 initiative.
However, there have been few New Zealand asset owners and fund managers making net zero commitments. We want that to change, and encourage and support asset owners and fund managers that are interested in making a meaningful pledge for climate change. Hence why we have formed:
The New Zealand Aotearoa Investor Coalition for Net Zero is an initiative that aims to accelerate action by asset owners and fund managers to reduce the emissions of their funds.
The coalition is reaching out across the finance sector, encourage funds to make commitments, provide support, and highlight net zero pledges to the media, government and the public.
Asset owners and fund managers should achieve net zero greenhouse gas emissions across all assets under management by 2050, or sooner.
Credibility criteria include:
- Short and medium-term targets should be specific and measurable to provide a suitable basis for monitoring progress.
- Targets should be reviewed each five years, and progressively ratcheted up to meet the zero emissions target across all assets under management.
- Targets should be included for investment in climate solutions, including renewable energy, emissions reductions and carbon removal.
- Emissions from investments should be reduced to the lowest level possible, where there are no technologically and/or financially viable alternatives to eliminate emissions. Any residual or transitional emissions should be balanced or exceeded by emissions reductions and/or removals through investment in net negative companies or sequestration. Amongst other criteria, these offsets should be transparent, measurable, long term, additional and verified