The Paris Aligned Asset Owners initiative (PAAO) has published initial targets for 13 signatories bringing the total number to have disclosed these plans to 40 asset owners.
There are now 57 signatories in total, typically pension and superannuation funds, representing over $3.3trn in assets under management.
Initiative members signed up to ten commitments including supporting the goal of net zero greenhouse gas emission by 2050 or sooner and to implement this with the aim of achieving real economy emissions reductions. They must also set interim targets for 2030 or sooner reducing Scope 1, 2 and 3 portfolio emissions and invest in climate solutions. Other commitments include setting fossil fuel investment policies and stewardship policies.
Initial targets published today are included in the PAAO’s first progress report. The report found 98% of PAAO signatories that have disclosed targets have established either a quantitative target or qualitative goal for increasing investments in climate solutions.
Launched in March 2021, PAAO is a partner to the UN Climate Champion’s Race to Zero campaign and a member of the Glasgow Finance Alliance for Net Zero (GFANZ).
Debby Blakey, CEO of Australian industry superannuation fund HESTA, said: “As the super fund representing those working in Australia’s health and community services sector, the risks and opportunities related to climate change have been a key focus area for HESTA for many years.
“This initiative provides a rigorous methodology to underpin our targets which provides better transparency and aligns us with international standards. This will improve our own climate-aligned investment practice, and will contribute to collective, accelerated climate action within the broader financial sector.”