LCP urges investment managers to take a proactive role in influencing financial markets, government policies, and business practices to increase the probability of reaching net-zero global emissions by 2050.
Managers’ products can only receive the highest rating from LCP if they are signatories to the Net Zero Asset Managers initiative as of April 1, 2022.
LCP has now modified its requirements to guarantee that managers handle systemic climate risk, emphasising a practical approach to reducing emissions by working with businesses and stakeholders.
The request also includes pushing investee entities to define and achieve net-zero ambitions and matching portfolios with net-zero paths.
LCP CEO Aaron Punwani says: “Climate risk is financial risk and at LCP, we firmly believe that limiting global average temperature rises to 1.5°C is in the best interests of our clients, our industry and our collective future.
“To get there we need to achieve net zero global greenhouse gas emissions no later than 2050. Investment managers need to be actively engaging with companies and helping them to align with net zero goals. Simply selling off portfolio assets that are emissions heavy will only serve to kick the can down the road and won’t help real world emission reduction.”
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