Net-Zero Alignment: Objectives and Strategic Approaches for Investors

Net-zero investing means implementing a decarbonization pathway for a portfolio, using its “emissions budget” to achieve a temperature scenario well below 2°C.

We investigated three common approaches to net-zero investing to see whether they can have a real impact on decarbonizing the economy: 1) shifting capital from more-carbon-intensive to less-carbon-intensive investments, theoretically influencing companies’ share price, cost of capital and access to capital; 2) engaging with individual issuers directly, whether through shareholder voting or other stewardship activities to spur faster decarbonization among laggards; and 3) directing investments toward low-carbon technology.

We also examined a fourth option, policy advocacy, which may affect the market as a whole.

You can now read the full whitepaper at the link below