21% of institutional investors won’t commit to net-zero

About one fifth (21 per cent) of global institutional investors state they have no intention of making commitments to reaching net-zero across their portfolios, Schroders latest Institutional Investor Study has found.

The majority of the respondents with no commitment were based in the US (44 per cent). EMEA-based investors were the most committed to delivering net-zero by or before 2050 and are implementing a strategy with interim targets (39 per cent).

Across all markets, it is felt that more support is needed in measuring and tracking net-zero pathways. About half of the respondents think their organisation mostly needs help in measuring and tracking their net-zero path, up to 51 per cent from 37 per cent last year. Results also showed that 49 per cent of investors believe that a greater consensus is also required around the respective frameworks and methodologies which measure net-zero pathways, in order for them to achieve their commitments.

“Sustainability is a complex and broad topic. It is also fast-changing, whether that be through new research, expanding data availability, regulation or government action. In this landscape, we cannot stand still. We will continue to review the priorities and expectations of our clients and market best practice to ensure we can continue to move forward,” Schroders global head of sustainable investment, Andy Howard, said.

The annual study spans 770 investors across 36 regions and USD 34.7trn in assets.

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