The Expectations Ladder is inclusive and designed for all investors, regardless of where they are on their climate change journey. That is why the Expectations Ladder sets out a summary of encouraged actions over four tiers, from those beginning to think about climate (Tier 4) to the net zero standard-setters (Tier 1).
The Expectations Ladder covers the Investor Agenda’s four interlocking focus areas – investment, corporate engagement, policy advocacy and investor disclosure, alongside governance which is a cross-cutting theme. It is neutral with respect to the tool, approach or initiative that investors may choose to adopt and serves as a ‘self-assessment checklist’ for investors to identify where progress has been made and where advancement is needed.
Expectations set out in the Ladder assist investors in:
Assessing their current approach to managing climate change risk and opportunity.
Publishing a standalone ICAP (often referred to as a climate transition plan or a net zero transition plan).
Embedding elements of the ICAPs into their climate change strategies, investment beliefs, transition plans, and disclosures.
Communicating their current activities and plans to stakeholders.
It is recommended that investors refer to the accompanying ICAPs Guidance document for more detailed information on how to implement the encouraged actions set in the Expectations Ladder and how to move across the ICAPs tiers. The Guidance also contains information on the resources underpinning the Expectations Ladder, including publications from the seven Investor Agenda Founding Partners, and endorsed initiatives The Glasgow Finance Alliance for Net Zero (GFANZ), Net Zero Asset Managers Initiative (NZAM), the Paris Aligned Asset Owners (PAAO) and the UN-convened NetZero Asset Owner Alliance (NZAOA).