Net Zero Portfolios

IEN's Net Zero Endowments Initiative

IEN convenes and supports endowments in learning about Net Zero Portfolios, making commitments, and participating in shareholder engagement efforts to get portfolio companies onto decarbonization pathways aligned with the 1.5 degree C warming target of the Paris Climate Agreement

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Learning the Basics:

Net Zero Portfolios are an effective and powerful way for investors to reduce risks associated with climate change and the transition to a low-carbon economy. They also accelerate corporate climate action to reduce systemic risk for all investors and to protect current and future generations from climate impacts.

A commitment to Net Zero means committing to transition the investment portfolio to net-zero GHG emissions by 2050 consistent with a maximum temperature rise of 1.5°C above pre-industrial temperatures, taking into account the best available scientific knowledge including the findings of the IPCC, and regularly reporting on progress, including establishing intermediate targets every five years in line with Paris Agreement Article 4.9.

Social equity is central to the need to address the climate crisis. Marginalized communities, disproportionately Communities of Color, are often the most vulnerable to climate impacts. To ensure an equitable and just transition, climate solutions must be viewed from a holistic perspective to ensure all communities are protected and have opportunities to benefit from the wealth generated in creating a new economy.

Leading with Justice: Net Zero Investing & Conversations on Climate Justice

This paper aims to provide a background and working definition of climate justice; argue that climate justice is central to reaching net-zero goals; and provide practical methods to implementing climate justice.

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Briefing Paper: Net Zero Endowments to Address the Climate Crises and Lead a Just Transition

This briefing paper aims to provide endowment decision-makers and their service providers with an introductory, high-level overview of net zero portfolio commitments

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IEN Q&A: Approaching Net Zero Strategies with a Racial Justice Lens, the Next Investment Frontier

While many endowments recently announced targets towards net zero portfolios, a growing number of market practitioners realize the strategic imperative to address net zero strategies with a racial equity lens

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