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Net Zero Target-Setting Methodologies Demystified


EMEA Head of ESG Investment Strategy
ESG Investment Strategist
EMEA ESG Investment Strategy

Investors are thinking through their strategies to support achieving net zero by 2050. We’d like to share some of our own research to help guide investors. There are three main methodologies available in the market. While all three frameworks focus on setting Paris aligned targets for financial institutions, there are some similarities and differences among the three frameworks:

  • Institutional Investors Group on Climate Change (IIGCC) Paris Aligned Investment Initiative (PAII)
  • Science Based Targets Initiative (SBTi) for Financial Institutions
  • United Nations-convened Net Zero Asset Owner Alliance (NZAOA) target setting protocol

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