Net-zero asset owners get engagement and transition boost

Net-Zero Asset Owners Alliance has set out principles for members to align their practices

The Net-Zero Asset Owners Alliance (NZAOA) has launched tools to support signatories align their lobbying and advocacy and create a transition plan.

Policy engagement

The $9.5trn UN-convened alliance today published Policy Engagement Guidelines which are intended to help members actively align their policy engagement practices with their climate commitments.

NZAOA sets out four policy engagement principles that define a net-zero-aligned approach to public policy engagement.

According to the guidelines the approach should be:

  • Accountable, with members’ activity reflecting the interest of its stakeholders
  • Active, as it assists policymakers in finding solutions to transition challenges and developing policy
  • Consistent, as engagements should be in line with individual member’s own net-zero commitments
  • Transparent, as members should be able to explain how they ensure their engagement with public policy debates are consistent with their climate commitments

Transition plans

Meanwhile, A Tool for Developing Credible Transition Plans: Public edition for asset owner pilot-testing offers practical steps for developing and evaluating transition plans.

Signatories can make use of five transition plan frameworks to map their activities:

  • The Corporate Sustainable Reporting Directive’s Transition Plan Disclosure Framework
  • The Glasgow Financial Alliance for Net Zero Net Zero Transition Plan
  • The UN High-Level Expert Group on Net-Zero Emissions Commitments of Non-State Entities (HLEG)’s Recommendation 4
  • Task Force on Climate-Related Financial Disclosures
  • The United Kingdom Transition Plan Taskforce

Günther Thallinger, board member of Allianz SE and NZAOA chair, said: “It’s critical that asset owners work to drive an enabling policy environment, without which it would be impossible for investors to fulfil their net-zero commitments. The alliance’s new Policy Engagement Guidelines encourage members in this regard.”

“On a company level, credible climate transition plans will be key, as they drive capital allocation and climate risk management. To address ambiguity, as guidelines and standards are evolving, the alliance’s Tool for Developing Credible Transition Plans breaks down the steps for creating a transition plan for asset owners and shows how members are already well-positioned to do so.”

Aligning lobbying and advocacy to climate commitments and developing transition plans are recommendations four and six of the UN High-Level Expert Group on Net-Zero Emissions Commitments of Non-State Entities (HLEG).

The UN secretary-general, António Guterres, established the HLEG in March 2022 to enable stronger, clearer and more quickly implemented net-zero standards from non-state entities like businesses, investors, cities, and regions.