Our analysis reveals that 37 of the 48 North American investors have made commitments to align their investing and portfolios with a net zero emissions future and have developed elements of Investor Climate Action Plans, or ICAPs, to show how they will deliver on them. Our analysis is based on the public climate disclosures of these 48 investors, who manage $60 trillion in assets or more than half of the global GDP.
Our assessment looked at how investors plan to address the financial risk caused by climate risk, translating their climate commitments into actions across all focus areas of ICAPs-- investment, corporate engagement, policy advocacy, and investor disclosure, along with governance.
Specifically, our analysis found:
Investment: 85% of the investors analyzed have either established a baseline carbon footprint for their portfolio or are assessing portfolio-level carbon exposure. 63% of investors are using advanced risk assessment-scenario analysis.
Corporate Engagement: 81% of investors conduct bilateral engagements with the companies they are invested in.
Policy Advocacy: About half of the investors mention their advocacy plans or advocacy policies in their Task Force on Climate-related Financial Disclosures reports or standalone investor climate action plans and participate in one or more public policy initiatives.
Investor Disclosure: Most investors include their investor climate action plans in their TCFD reports.
Governance: Of the 48 investors reviewed, all 37 investors who made a net zero commitment have board-level oversight over their climate strategy and plans.