Background

As part of the UK's presidency of COP26, the UK Government encouraged industry to commit to support the objective of transitioning the economy to net zero greenhouse gas emissions by 2050. Specifically, the Race to Zero Breakthroughs were launched in January 2021, setting a target for industry to make a net zero commitment which is aligned with the UN-led Race to Zero. 

The Race to Zero is an umbrella initiative for net zero climate change initiatives involving non-state actors. This includes cities, large corporates, small businesses, charities and parts of the financial services industry, among many others. This was launched in 2020 to act as a counterpart to the net zero commitments which have been made by national governments since the Paris Agreement was signed in 2015, if not even earlier.

Following the launch of Race to Zero, the industry launched its own commitment – the Net Zero Asset Managers initiative – in December 2020.

Net Zero Asset Managers initiative

The IA is pleased to support members who have signed up to the Net Zero Asset Managers initiative and was named as the first official supporting partner organisation to NZAM in July 2021. To date, investment managers with £7.7trn of assets under management in the UK have made these net zero commitments. This represents more than three-quarters of the AUM in the UK.

By becoming a supporting partner organisation of NZAM, the IA is formalising a commitment we made with the full support of the Board to support the Race to Zero, the Net Zero Asset Managers initiative and any members considering becoming signatories.

IA Net Zero Forum

The IA Net Zero Forum was established in 2021 to enable peer-to-peer knowledge sharing and provide a platform for all IA members to raise questions and find solutions as they consider the transition to net zero.

If you are interested in joining the Net Zero Forum please contact Paul Scaping. We would like to understand the issues, relating to both investments and operations, on which members would find it useful for each forum meeting to focus.

'The Path to Net Zero' bulletin

The Investment Association publishes a monthly net zero news bulletin, 'The Path to Net Zero'. This newsletter keeps members updated on developments from the IA and UK policymakers towards the goal of tackling climate change. 

This bulletin is sent to relevant IA committees and all subscribers to the IA sustainability and responsible investment mailing list. To ensure you're subscribed to future editions please click here and follow the instructions.

Climate Change Position

The IA’s Climate Change Position lays out the investment management industry’s support for the Paris Agreement goal to limit global warming to well below 2°C, and preferably to 1.5°C, compared to pre-industrial levels.

Our position emphasises the role investment managers will play through our strong relationship with stakeholders and groups that can influence climate change policy. We continue to support the UK Government’s intention to create the world’s first net zero financial centre and the policy work around the need for a just transition.

Climate Change Action Plan

The IA Climate Change Action Plan is the latest expression of the steps the IA is taking to deliver on the IA’s position on climate change. Our updated position builds significantly on our 2020 industry position on climate change and now recognises the importance of nature in preventing climate change, as well as the harmful effects climate change is having on the conservation of biological diversity.

Our action plan and commitments will be reviewed on a yearly basis to ensure we are maintaining pace to support the UK economy’s transition to net zero by 2050 and keeping abreast of the latest regulatory and policy changes. The next review of the IA action plan will take place in 2024.