Responsible and Sustainable Investing

THE PATH TO 2030

Aotearoa New Zealand Investor Coalition for Net Zero & COP 26

Aotearoa New Zealand Investor Coalition for Net Zero

Last week saw the launch of the Aotearoa New Zealand Investor Coalition for Net Zero. The Coalition piggy backs off a number of international equivalents including the UN-convened Net Zero Asset Owners Alliance and the Net Zero Asset Managers Initiative, the focus being to align investment portfolios which are consistent with a the UN-agreed 1.5 ̊C pathway towards
Net Zero emissions by 2050 or sooner. Globally, pledges currently amount to over US$43 trillion for fund managers and US$8.5 trillion for asset owners. These initiatives illustrate an increasing recognition amongst investors of the financial risks and opportunities presented by climate change (in addition to the crucial importance of the goal in itself). 

The NZ coalition core group is Toitū Tahua :The Centre for Sustainable Finance, Mindful Money and the Investor Group on Climate Change (IGCC). Supporters of the coalition include the Sustainable Business Council (SBC), Sustainable Business Network (SBN), Toitū Envirocare and Responsible Investment Association Australasia (RIAA).

The Initiative aims to accelerate climate action through pledges by asset owners and fund managers to reduce the emissions of their funds.

Further information including the results of the survey can be found in the recently published paper^, New Zealand Investors Stepping up to the Climate Challenge.

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More from COP 26

The first week of the COP 26 Conference in Glasgow has passed with world leaders jetting in (and out) and climate protestors making much noise. Announcements and agreements have been coming in thick and fast. Some of the key initiatives to date have included India's announcement of setting a 2070 net zero target, an International Methane Agreement, tech plans to achieve carbon neutral, a Deforestation Pledge, the UK announcement to be a Net Zero Carbon Centre and targets to end coal power.

There is much debate on progress to date with the Climate Action Tracker* estimating the current commitment would lead to a global temperature rise of 2.4 degrees by century end, well above the Paris commitment of 1.5 degrees.

We'll provide a summary of the outcomes of COP 26 next week when it concludes.

I trust that this is of interest and feel free to touch base if you have any immediate questions.

Kind regards,

Matthew Mimms, The Investment Store Limited

^ New Zealand Investors Stepping up to the Climate Challenge - Results of a survey of asset owners and fund managers - Prepared by Barry Coates, Mindful Money for the Aotearoa New Zealand Investor Coalition for Net Zero.

*https://climateactiontracker.org/publications/glasgows-2030-credibility-gap-net-zeros-lip-service-to-climate-action/

Disclosure - Matthew Mimms is a Board Member of the Responsible Investment Association of Australasia and  member of the Advisory Board for Mindful Money.

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