What is the NZAM initiative?
Source: Intergovernmental Panel on Climate Change (IPCC) 1.5°C scenarios, Institutional Investors Group on Climate Change (IIGCC)
IN ITS OWN WORDS
After an in-depth review, NZAM is looking to “retain ambition, remain globally inclusive, and ensure the Commitment Statement continues to be practical within the evolving landscape.” This acknowledgement of the changing landscape clarifies that “the extent to which signatories can implement the actions set out in the Commitment Statement depends on a wide range of factors including clients, policies and regulations adopted by governments and other actors.”
“With the aim of delivering better investment outcomes, signatories recognise the importance of holding the increase in the global average temperature to well below 2°C above pre-industrial levels and of continuing to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels, in line with the stated goals of the Paris Agreement.”
WHY HAS RUFFER REMAINED A SIGNATORY?
Our assessment of the risks facing investors concludes that climate risk presents a challenge to meeting our investment objectives. To protect and grow capital, we are deepening our understanding of, and engagement with, the energy transition.
The drive to decarbonise will have profound implications for the investment universe. This disruption will create numerous risks and opportunities as asset prices respond to the pressures of a carbon-constrained world and an increasingly inhospitable environment.
NZAM provides a framework for managing these risks and capturing these opportunities. It also gives a clear set of ambitions which we can use to communicate our approach to Net Zero investing.