INSIGHT by The Investor Leadership Network (ILN)
The Investor Leadership Network (ILN), a global coalition of 13 leading institutional investors representing over $10 trillion AUM, is proud to announce the release of a new white paper that provides insights into real-world decarbonization strategies. Titled, “Investing for the low carbon transition– turning portfolio targets into action,” this comprehensive report aims to guide investors towards investment strategies that will impact the transition to a low carbon economy.
The urgency to combat climate change has never been greater, and the financial sector plays an important role in driving the transition to a low carbon economy. The ILN’s new white paper highlights the investment and portfolio construction strategies that leading investors are using to impact the real-economy transition.
The white paper provides practical examples of how decarbonization is being put into practice across diverse portfolios. It delves into key areas such as external enablers and barriers shaping systemic decarbonization efforts, aligning corporate decarbonization goals with portfolio strategies, approaches to setting credible short-term emissions reduction targets, establishing the credibility of assets’ transition plans, and analyzing engagement strategies to achieve real-world decarbonization goals. By examining different strategies, investors can effectively turn their ambitions into concrete action and support lasting change.
“As institutional investors, it is important that we not only decarbonize our portfolios, but also drive the real-world decarbonization. ILN’s new white paper supports investors through this important transition by showcasing practical strategies that asset owners and asset managers are taking to align portfolio impact with real-economy decarbonization.”
-Maria Montero, Principal in CPP Investment Board’s Sustainable Investment Group and Co-Lead of ILN’s Climate Change Committee
The release of this white paper builds on the ILN’s previously published climate change resources, including 2022’s Net Zero Investor Playbook, which synthesized investor-specific frameworks, methodologies, and implementation challenges. By extending the Playbook, the ILN aims to raise awareness among the broader investor community of the successes and learning opportunities shared by ILN members on their decarbonization journey.
“We are immensely proud to present this new white paper, which offers guidance for investors to implement new investment and portfolio management strategies that drive real-world change, while delivering financial returns. By sharing practical examples and insights from our esteemed ILN members, we hope to inspire and guide the broader investor community towards a sustainable and prosperous future.”
-Amy Hepburn, CEO of the Investor Leadership Network
The Investor Leadership Network’s white paper, “Investing for the low carbon transition– turning portfolio targets into action,” is now available for download here. ILN’s Climate Change Committee will launch a second white-paper on climate change regulations and taxonomies in September 2023.
The Investor Leadership Network was launched at the 2018 G7 to facilitate and accelerate collaboration by leading institutional investors to drive the transition to a sustainable and inclusive global economy. As the leading network of investors taking action for people, planet and prosperity, the CEO-led group is composed of 12 global institutional investors representative of six countries, with over US$10 trillion in assets under management.
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