- Inaugural Progress Report showcases innovation and best practice amongst asset owners for turning net zero commitments into action.
- New targets mean 40 asset owners have disclosed initial targets since March 2021.
- The Paris Aligned Asset Owners comprises 57 signatories representing over $3.3 trillion AUM.
- Asset owners are typically pension and superannuation funds, often systemically important.
The Paris Aligned Asset Owners initiative (PAAO), an international group of asset owners committed to supporting the goal of net zero greenhouse gas emission by 2050 or sooner, has published its first Progress Report showcasing the steps asset owners are taking to reach their net zero goals.
Alongside the Progress Report, initial target disclosures have also been published for a further 13 asset owners taking the total to 40 since the initiative launched in March 2021. The latest disclosures include targets from asset owners including AP7, Lloyds Banking Group Pensions Trustees Limited and Ilmarinen.
Asset owners are typically pension and superannuation funds, and increasingly occupy a systemically crucial position in the process of aligning financial flows to net zero by 2050.
PAAO is an outcome of the Paris Aligned Investment Initiative, which was established as a collaborative investor-led forum to support investors to align their portfolios and investment activities to the goals of the Paris Agreement. Since 2021, PAAO has been a partner to the UN Climate Champion’s Race to Zero campaign and a member of the Glasgow Finance Alliance for Net Zero (GFANZ).
PAAO signatories draw on the Net Zero Investment Framework, the most widely utilised net zero methodology by financial institutions, to set targets and devise a net zero investment strategy.