USS has steadily reduced the carbon footprint of its portfolio but real world carbon intensity and global emissions have climbed relentlessly higher. Now the investor says it is going to focus more of its effort on engagement with policymakers than reporting its emissions.
Real estate investors are in prime position to cut emissions with the support of benchmarks and standards and a collective voice.
Asset managers have a chance to really impact the real economy with their commitment to net zero. The Net Zero Asset Managers Initiative now has 73 signatories and one third of assets in the industry committed. It’s reached tipping point, says one of the initiatives’ founders Ed Mason.
As concerns about climate change reach fever pitch, Harvard Business School has published a report that shows investment strategies that “aggressively’ reduce carbon emissions can significantly boost fund performance.
The NZ$43 billion ($27 billion) New Zealand Super Fund is undergoing its five-yearly review of its reference portfolio, an innovative and unique asset allocation reference point that allows the fund to benchmark the performance of its actual portfolio and any value added through active management.
The Transition Pathway Initiative has grown quickly as a tool for asset owners and fund managers looking to plot their way toward a low-carbon economy – but there is more on its agenda. Scrutiny of more investors, expanded research and transparency in emerging markets are all on its to-do list.
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