The Institutional Investors Group on Climate Change (IIGCC) has published guidance for investors on aligning and managing their infrastructure portfolios with net zero. It can be used by both multi-asset and specialist infrastructure investors, the IIGCC said. The guidance allows investors to assess alignment based on six criteria, including whether targets cover all scopes of emissions. It also outlines credible portfolio coverage targets and how the percentage of AuM aligned with net zero will increase over time. Signatories of the Net Zero Asset Managers initiative (NZAM) referred to the guidance in their latest target-setting, with the IIGCC now encouraging asset owner signatories to Paris Aligned Asset Owners to utilise the methodology to meet the requirements of the initiative. The final guidance follows an investor-led consultation launched in 2022 and is also aligned to IIGCC’s Net Zero Investment Framework (NZIF). “We know that decarbonising infrastructure globally will be vital if we are to deliver net zero and that within this context investors have a pivotal role to play, not least owing to the level of investment held in the asset class,” said Stephanie Pfeifer, IIGCC’s CEO. The IIGCC has also announced that it will be leading the second phase of the development of the Physical Climate Risk Assessment Methodology (PCRAM), which was formally launched in September by Mott MacDonald and the Coalition for Climate Resilient Investment. The methodology aims to help infrastructure owners and operators to evaluate physical climate risks and analyse long-term impacts. The PCRAM 2.0 workstream led by the IIGCC will commence in April. “In addition to the pursuit of net zero, due to its unique characteristics, infrastructure is arguably the most important asset class to build resilience into at the same time,” said Pfeifer.
📢 NEWS: We have published net zero guidance for infrastructure that aligns with the Net Zero Investment Framework, with the support of @AIGCC_update & @IGCC_Update. This aims to help investors align & manage infrastructure portfolios to meet their net zero commitments. 🌍 (1/3) pic.twitter.com/NWEFGrsjik
— IIGCC (@IIGCCnews) March 23, 2023