The United Nations-convened Net-Zero Asset Owner Alliance (NZAOA) recently launched a call to action for asset owners and index providers for the development and uptake of net-zero-aligned benchmarks.
NZAOA spells out 10 principles such indices should follow to underpin the alliance’s goal of transitioning investment portfolios to net-zero greenhouse-gas emissions by 2050, consistent with a maximum temperature rise of 1.5 degrees Celsius above pre-industrial levels.
In a new publication entitled Scientific Beta welcomes the NZAOA's Principles for Net-Zero-Aligned Benchmarks, Erik Christiansen, ESG and low-carbon investment specialist with Scientific Beta, shows how Scientific Beta’s climate impact consistent (CIC) indices integrate these 10 principles. In effect, the CIC indices are designed to maximize the climate impact potential of an investment strategy and, align with the commitment that NZAOA members “emphasize GHG emissions reduction outcomes in t
