The initiative, which includes Australian firms JANA and Frontier, alongside bfinance that have a local presence, is endorsed by the United Nations “Race to Zero” campaign and supported by the Principles for Responsible Investment (PRI).
Announcing the initiative on Tuesday, the 12 signatories underlined in a joint release that they will be abiding by nine actions to support the goal of global net-zero greenhouse gas emissions by 2050 or sooner, in the context of legal and fiduciary duties and specific client mandates.
First among these actions is integrating advice on net-zero alignment into investment consulting services as soon as possible, and within two years of making this commitment.
Ultimately, the first action and a further four focus on how investment advisory services can be tailored to be more environmentally minded, one dictates internal emission reduction targets, two look at net-zero positive engagement with the wider financial community and a final one ensures accountability through public reporting.
Speaking on the occasion, David Vafai, chief executive at bfinance, underlined the responsibility firms have in a transition towards a “resilient Net Zero economy”.
“This initiative is an important milestone for us: we are making some significant changes to policies and processes as we look to deliver on commitments,” Mr Vafai said on the NZICI.
“A number of our clients are already very advanced in addressing issues such as portfolio carbon intensity, temperature alignment and investment opportunities relating to the energy transition.”
JANA CEO, Jim Lamborn, emphasised the need for sustained international collaboration for the UN goals to be met.
“We are proud to be involved with the NZICI and look forward to working with others in the investment community to work towards meeting our universal goal of a global net zero greenhouse gas emissions by 2050 or sooner,” he said.
Echoing his sentiments, Andrew Polson, CEO of Frontier, said that a unified public commitment would serve for the organisations to play their parts in reducing real-world emissions.
“By joining the Net Zero Investment Consultants Initiative, Frontier is proudly and publicly committing to develop capabilities to support our clients align their investment strategies to a 1.5C degree future, while also achieving their performance objectives,” Mr Polson commented.
The full list of investment consultants involved includes Barnett Waddingham, bfinance, Cambridge Associates, Cardano, Frontier, Hymans Robertson, JANA, LCP, Meketa, Redington, Willis Towers Watson and Wiltshire.
