Members of the Net Zero Asset Owner Alliance (NZAOA) have set more ambitious sub-portfolio emission reduction targets across bonds, equities, real estate and infrastructure in their latest progress report. With the alliance now reporting average reductions in absolute financed greenhouse gas emissions of at least 6% annually, 79 of 81 NZAOA members have also chosen to implement sub-portfolio target-setting methodologies which cover 48% (US$4.3 trillion) of the alliance’s total AUM – up from 42% the previous year. On average, members are targeting a 26% emissions reduction by 2025 for bonds, equities, real estate and infrastructure. Sub-portfolio target coverage is expected to increase further once private assets are phased in. The 12 new members of the alliance that have set their targets for the first time in 2024 have all set both their sub-portfolio and climate solution investments targets, together with mandatory engagement targets. “The alliance sets a powerful example for meaningful progress,” said NZAOA Chair Günther Thallinger. “To maintain momentum, governments must implement bold climate policies and define concrete sector-based and investible transition plans with short-term targets to meet their Paris commitments.”
