Leading investment consultants form global initiative to push for net zero

NZICI working towards halving global emissions by 2030

Investment consultants come together to support the goal of net zero emissions by 2050 or sooner. We are a group of twelve investment consultants committed to supporting our clients in achieving the goal of global net zero greenhouse emissions by 2050. We help our clients prioritise real economy emissions reductions, reflecting the interim target of 50% global emissions reduction by 2030 or sooner, in alignment with objectives set out in the Paris Agreement. Advising on assets of more than USD 10 trillion, we are committed to implementing a series of bold actions to develop our advisory services and reduce operational emissions. In coming together to make this commitment, we recognise the crucial role of investment consultants as a group within the asset management ecosystem, advising asset owners on strategy and connecting investors with investment managers. The NZICI has been led by some members of the Investment Consultants Sustainability Working Groups in the UK (www.icswg.org) and US (www.icswg‐us.org). It is endorsed by the UN Race to Zero campaign and supported by the Principles for Responsible Investment. Its twelve founding signatories are: Barnett Waddingham, bfinance, Cambridge Associates, Cardano, Frontier Advisors, Hymans Robertson, JANA, LCP, Meketa, Redington, Willis Towers Watson and Wilshire. We hope to welcome additional members soon.

Our Commitment

1. Integrate advice on net zero alignment into all our investment consulting services as soon as practically possible and within two years of making this commitment
2. Work with our institutional asset owner clients to identify the investment risks from climate change, highlight the importance of net zero alignment and, where applicable, support our clients in developing policies that align their portfolios to a net zero pathway
3. Support efforts to decarbonize the global economy by helping our clients prioritize real economy emissions reductions, reflecting the target of 50% global emissions reduction by 2030 or sooner using existing decarbonization methodologies ¹
4. Assess and monitor asset managers on the integration of climate risks and opportunities in their investment decisions and stewardship and reflect this evaluation in our client recommendations

With respect to our fully discretionary services, we will:

5. Align with the Net Zero Asset Manager Initiative as soon as practically possible and within two years of making this commitment

With respect to our own business operations, we will:

6. Set emissions reduction targets across all our operational emissions in line with 1.5°C scenarios

Within the wider financial community, we will:

7. Where suitable net zero methodologies do not exist, work collaboratively for the benefit of our clients to address these challenges, seeking harmonized methodologies
8. Engage, directly or in collaboration, with regulators and policymakers, to facilitate the transition to net zero carbon emissions, addressing any barriers to our clients adopting and achieving their net zero targets

To ensure accountability, we will:

9. Report progress by our firm against the commitments made here at least annually in public domain.