93 investors join IIGCC initiative to align portfolios with Paris goals

The Institutional Investors Group on Climate Change (IIGCC) has launched a new project to support investors aligning their portfolios with the goals of the Paris Agreement.

The so-called Net Zero Engagement Initiative, which includes 93 participating investors, will develop an engagement strategy for each company, the IIGCC said.

For those identified as strategic priorities, this will include “engagement sprints” which will focus on key pools of companies. Participants in the initiative include Brunel Pension Partnership, Church Commissioners for England, EOS at Federated Hermes, GAM Investments and P+.

The launch follows letters sent to 107 companies, earlier this month, which recommended that they adopt a transition plan that includes a comprehensive net zero commitment, aligned greenhouse gas targets, tracked emissions performance, and a credible decarbonisation strategy. 

Recipients of the letter included Ferrari, Ford Otosan, Ørsted, and Wizz Air.

The IIGCC is a founding member of the Climate Action 100+ initiative, and according to the IIGCC its own engagement initiative expands on the range of companies covered by Climate Action 100+’s focus list of 166. This includes more companies who are heavy users of fossil fuels, contributing to demand for its products.

Last month, the IIGCC announced its plans for 2023 with a focus on three core elements of initiatives, frameworks and implementation.