Three Local Government Pension Scheme pools have joined a new Net Zero Engagement Initiative (NZEI) to scale-up and accelerate climate-related corporate engagement.
Border to Coast Pensions Partnership, Brunel Pension Partnership and the Local Pensions Partnership Investments have joined 90 other investors in the initiative launched by the Institutional Investors Group on Climate Change (IIGCC).
The IIGCC’s NZEI will expand the companies engaged with beyond the Climate Action 100+ focus list, which will help investors align more of their portfolios with the goals of the Paris Agreement.
Stephanie Pfeifer, IIGCC’s CEO, said: “The NZEI provides part of the solution to the greatest challenge facing investors who have made net zero commitments: how to deliver on these through engagement with companies.
“By building on other initiatives, including Climate Action 100+, and by scaling up engagement, the NZEI adds to the ‘how’. In doing so, the NZEI supports investors in the implementation phase of their net-zero journeys.”
The initiative has started with an initial 107 companies being sent letters from a total of 93 investors outlining their expectations for a net-zero transition plan.
The key transition plan recommendations set out in the letter include a comprehensive net-zero commitment, aligned greenhouse gas emissions targets, emissions performance tracked and a credible decarbonisation strategy.
According to the IIGCC, the initiative has been developed so that it could scale globally to cover more companies in the next 18-24 months.
