The Institutional Investors Group on Climate Change (IIGCC) has published guidance to help investors identify, classify and measure allocation to climate solutions. The document provides guidance for investors utilising the Net Zero Investment Framework (NZIF) or other net zero target setting methodologies to meet their own voluntary net zero commitments through increasing allocation to climate solutions. It covers listed equity and corporate fixed income with a focus on secondary market holdings to emphasise the role of investors to influence real world emissions through stewardship and engagement, and shifting expectations of good governance and strategy for companies. According to the IIGCC, whilst finance can have the greatest and most direct impact through primary markets by providing new capital to the companies, projects, or governments involved in climate solution activities, as defined in the guidance, institutional investors play an important role in recycling capital back into primary markets and in turn shifting expectations of the attributes of assets that are created by issuers and originators.
