First net zero guidance for private equity for GPs and LPs launched by IIGCC

  • IIGCC has developed a new private equity component for the Net Zero Investment Framework (NZIF) first published by the Paris Aligned Investment Initiative (PAII) in March 2021
  • The comprehensive guidance – covering metrics, targets and implementation actions relevant to GPs and LPs – offers a coherent industry-wide approach to net zero
  • For the first time, the component provides a blueprint for GPs to make and implement net zero commitments and allows LPs to incorporate private equity in net zero strategies for multi-asset class portfolios

The Institutional Investors Group on Climate Change (IIGCC) has today published a new component for the Paris Aligned Investment Initiative (PAII)’s Net Zero Investment Framework (NZIF), providing guidance on aligning private equity portfolios with net zero that is relevant to both GPs and LPs.

The addition of this new component is part of a strategy of continued expansion of the NZIF, following its initial launch in March 2021. The new component brings the asset classes covered to five: listed equity and corporate fixed income, sovereign bonds, real estate and private equity.

The NZIF is used by signatories of the Net Zero Asset Managers initiative and the Paris Aligned Asset Owners, outlining a common set of recommended actions, metrics and methodologies to maximise their contribution to achieving net zero emissions globally by 2050 or sooner.

The proposed private equity guidance is now open for public consultation here until 27 February 2022, with the final component expected to be published in Q2 2022.

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