The Net Zero Investment Framework (NZIF), the go-to resource for investors building net zero strategies, has been revamped and released as NZIF 2.0.

NZIF 2.0: Your Starting Point for Net Zero Investing

The new NZIF 2.0 Summary Guide offers a clear understanding of the framework and is the first port of call for investors tackling climate risks and opportunities while implementing their net zero commitments. It also serves as a gateway to additional resources and insights from supporting organisations.

Key Improvements in NZIF 2.0

• Financed Emissions: A refined approach to portfolio decarbonisation clarifies how it should support portfolio alignment with net zero goals. The focus is now on "financing reduced emissions" rather than simply "reducing financed emissions." This shift reflects investor experience where a sole focus on financed emissions could discourage investments in crucial climate solutions.
• Expanded Guidance: NZIF 2.0 provides new guidance for asset classes like Sovereign Bonds, Real Estate, and Private Debt, complementing existing guidance on Infrastructure and Private Equity. It also includes improved criteria for emissions performance in listed equities and corporate fixed income, along with guidance on certificate deposits for net zero cash management.
• Actionable Insights: NZIF 2.0 distils best practices from investors into over 40 practical actions that investors can incorporate into their strategies.

NZIF 2.0: Streamlining Net Zero Investing

By consolidating a wide range of resources in one place, NZIF 2.0 makes it easier for investors to consider both risk and return within their specific contexts. Information is now presented in a more accessible, intuitive, and cohesive manner.

About the Net Zero Investment Framework

Developed by the Institutional Investors Group on Climate Change (IIGCC) in 2021, the NZIF emerged from the Paris Aligned Investment Initiative (PAII). The PAII, delivered by a network of investor groups, supports investors in aligning their portfolios with the goals of the Paris Agreement.

The Global Standard for Net Zero Investing

The NZIF has become the leading reference framework for investors worldwide, assisting them in crafting their own credible net zero strategies and transition plans. Over 200 investors have used the NZIF to support their net zero commitments, with its reach extending beyond dedicated initiatives.

Guidance for All Asset Classes

The NZIF offers guidance for most traditional asset classes, including listed equities, corporate fixed income, sovereign bonds, real estate, infrastructure, private equity, and private credit.

Investor-Driven Implementation

The NZIF empowers investors to make their own informed decisions. It provides a framework and lays out potential options, but ultimately, investors decide how to implement their plans based on their individual strategies, policies, and fiduciary duties.

Stephanie Pfeifer, CEO, IIGCC: “Based on three years of practical experience, NZIF 2.0 incorporates the latest guidance on net zero target setting and the latest thinking on the levers available to investors to meet their net zero goals. For investors looking to identify and manage climate-related transition risks and opportunities in their portfolios, the Net Zero Investment Framework has cemented its position as the number one resource to accompany them along their journey.”

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Source: IIGCC