ShareAction has published the first in a planned series of guidance manuals with recommendations on how asset managers can set interim net-zero targets that are fit for purpose.
Announced in a July 10 press release, ShareAction’s Responsible Investment Standards and Expectations (RISE) series provides recommendations to asset managers on the steps they “can and should take in pursuit of being a truly responsible investor.”
The first paper addresses how asset managers can set robust emissions goals to influence portfolio companies to decarbonize at the speed and scale required to limit global temperature rises to 1.5-degrees Celsius.
“Time is running out for an effective response to the enormous social, environmental, and financial risks posed by the climate emergency,” said ShareAction’s Head of Investor Engagement Niall Considine.
“We acknowledge that net-zero target setting is complex and welcome the important first steps some investors have taken. We now need to see asset managers go further by strengthening their interim targets – these recommendations provide a practical framework to do this transparently,” he added.
ShareAction’s guidance sets out five expectations for asset managers. This includes advocating for a common approach to emissions reporting and interim target setting. Another focuses on enhancing transparency about assets not currently included within targets and progress for bringing them into scope. Expectations are also set to use a reduction in absolute, real world emissions as a primary metric to report and set targets.