Asset Manager & Asset Owner Task Force Launch a Suite of Resources
The SMI Asset Manager & Asset Owner Task Force launch resources to help institutional investors pursue net-zero; including guidance on asset stewardship & allocation and portfolio construction, and recommendations to accelerate transition finance.
The Sustainable Markets Initiative (SMI) Asset Manager & Asset Owner Task Force announced the launch of a suite of resources designed to support investors in the transition to a more sustainable future. The resources are intended to help institutional investors as they pursue net-zero ambitions and span guidance on asset stewardship, asset allocation and portfolio construction, and recommendations to accelerating transition finance.
Recommendations for Accelerating Viable Transition Finance Structures
These are a set of recommendations to serve as an actionable guide for asset managers, asset owners, Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs), and policymakers to accelerate the flow of capital, at scale, toward viable and credible transition finance structures. Despite the wide range of viable transition finance structures, these recommendations call for a credible and inclusive transition definition, a supportive enabling and policy environment, and appropriate levels of blended finance and investment de-risking. Watch AMAO Task Force members Audrey Choi, Hendrik du Toit and Rick Lacaille discuss accelerating efforts around transition finance on the path to net-zero here
Download the full Recommendations for Accelerating Viable Transition Finance Structures here
Investor Expectations for Banking Transition to Net-Zero Emissions
Recognizing the scale and urgency of the action needed, the AMAO Task Force has developed a set of investor expectations asking banks to raise their climate ambitions by striving for a goal of global net-zero emissions by 2050. The Task Force is asking to make this commitment in order to manage climate-related risks and proactively position themselves for a low carbon economy. These asks are meant to serve as an example of best practice - they are not intended to be overly prescriptive, and accelerate actions that - if taken - will lead to faster decarbonization of a critical industry.
Download the full Investor Expectations for Banking Transition to Net-Zero Emissions document here
Asset Owner Practitioner's Guide: Net-Zero Allocation
The members of the Net-Zero Asset Allocation Working Group, working on behalf of the SMI Asset Manager & Asset Owner Task Force, propose a framework of principles and best practices dedicated to all types of asset owners to include climate change and net-zero considerations in portfolio construction.
Download the full Net-Zero Allocation Paper here
Investor Expectations for Shipping Transition to Net-Zero Emissions
Climate risk is investment risk. As investors continue to orient their asset stewardship programs to reflect this reality, hard-to-abate sectors each present their own stewardship and engagement challenges. This document work lays out considerations investors can take into account when engaging with companies in their portfolios engaged across the shipping industry to support to transition of this sector to net zero. The Task Force looks forward to continuing this work across hard-to-abate industries.
Download the full Investor Expectations for Shipping Transition to Net-Zero Emissions document here
For a complete view of the outputs of the SMI's Asset Manager & Asset Owner Task Force, please visit the Asset Manager & Asset Owner Task Force page here