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- BII releases science-aligned guidance to help fund managers in emerging markets set and implement credible net-zero targets.
- Fund managers are uniquely positioned to drive global decarbonization through strategic capital allocation and engagement with portfolio companies.
- The guidance leverages key frameworks like SBTi, NZIF, and GFANZ to promote climate-aligned investment and regulatory readiness.
The global push toward net-zero emissions by 2050 is not a lofty ambition—it’s an essential strategy to secure long-term economic resilience and mitigate climate risk. As the world faces intensifying climate impacts, investors and businesses are being called to embed climate action into core decision-making.
“Achieving emission reductions in line with the 1.5 degree towards net-zero emissions by 2050 is not an aspirational goal but a necessary commitment to mitigate the worst impacts for people, businesses and communities.”
The financial sector is a key lever in this transformation, especially as nearly $3 trillion in annual investment is needed by 2030 to meet the Paris Agreement’s mitigation goals. Fund managers play a critical role in this ecosystem. They can redirect capital flows, influence company behavior, and shape climate-aligned portfolios.
However, navigating net-zero frameworks is especially challenging in emerging markets, where regulation and operational realities can be more complex.
To address this gap, British International Investment (BII) has released a new Net Zero Target Setting Guidance tailored for fund managers operating in emerging economies.
“At BII, we recognise the urgency of addressing climate change and the need for robust guidance to support investors in emerging markets. Climate change is central to our mandate of driving sustainable economic growth in the markets we invest in.”
Built through deep engagement with its own fund managers and portfolio companies, the BII framework provides practical, science-aligned tools for setting and implementing net-zero targets. The guidance supports the mitigation pillar of the Paris Agreement and complements other tools that address climate risk, resilience, and adaptation.
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The document outlines actionable steps for fund managers to align with key global standards, including:
- The Science-Based Targets Initiative (SBTi)
- The Net-Zero Investment Framework (NZIF)
- Guidance from the Glasgow Financial Alliance for Net Zero (GFANZ)
“Through extensive engagement with our portfolio companies and fund managers, we identified a clear gap in accessible, practical guidance tailored to emerging market contexts. Our Net zero target setting guidance is a response to that gap—providing fund managers with the tools and frameworks needed to set credible, science-aligned net-zero targets.”
For fund managers, embracing this guidance means more than regulatory readiness—it’s a pathway to enhanced reputation, investor trust, and impact.
“By adopting the principles outlined in this document, fund managers can better position themselves for regulatory readiness, enhance their reputation, and attract capital aligned with climate-conscious investment strategies.”
BII’s call to action is clear: fund managers, investors, and stakeholders must join forces to move beyond ambition and into implementation.
“The journey to net zero is one that requires collaboration, innovation, and commitment. Together, we can turn ambition into action.”
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