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- New investor guide: CFA Institute released Investment Innovations Toward Achieving Net Zero: Voices of Influence, featuring 16 research papers from more than 50 global experts.
- Core themes covered: Global cooperation, fiduciary duty, decarbonization, carbon pricing, and net-zero-aligned portfolios.
- Practical insights: Case studies highlight portfolio construction at Danish pension fund PenSam and municipal green finance in Huzhou, China.
CFA Institute’s Net-Zero Roadmap
The CFA Institute Research and Policy Center has launched a new guide to support investors in integrating net-zero strategies into their portfolios. The publication, Investment Innovations Toward Achieving Net Zero: Voices of Influence, consolidates expert insights into one comprehensive resource aimed at advancing net-zero investing practices.
The guide, which features research from industry professionals and academics, examines key themes shaping net-zero investment, including:
- Global Cooperation: Systems-level thinking, international policy coordination, and climate-hedged portfolios.
- Fiduciary Duty & Climate Goals: Aligning investment objectives with climate-related policies and financial responsibilities.
- Decarbonization & Carbon Pricing: Market trends, policy harmonization, and the role of emerging technologies.
- Measuring Carbon Emissions: Risk assessment tools, improved metrics, and standardized climate disclosures.
- Net-Zero-Aligned Portfolios: AI-driven optimization, greenwashing mitigation, and strategies for navigating data gaps.
Related Article: CFA unveils global ESG standards to address greenwashing
A Growing Investor Imperative
Chris Fidler, Head of Global Industry Standards at CFA Institute, emphasized the importance of this resource:
“Net-Zero investing is really still in its infancy. Against this backdrop, we’ve brought together experts from across the globe to break down the big ideas around net-zero investing and create an extended knowledge bank for investors seeking to incorporate net-zero strategies into their portfolios. The guide provides a comprehensive overview of the latest practices and trends, helping illuminate pathways to understanding the intricate dynamics of net-zero investing, while aligning financial objectives with client goals.”
“As we see throughout the guide, climate-related disclosures play a central role. At CFA Institute, we advocate for relevant, reliable, comparable, timely, and understandable climate-related disclosures that are useful for investors. Standardizing climate disclosures and improving quality is crucial, along with assurance by independent professionals. We hope the newly published guide will serve as a valuable resource for those seeking to navigate the evolving landscape of net-zero investing.”
The guide also underscores the necessity of reliable, standardized climate disclosures and independent assurance to ensure transparency in net-zero investing.
Real-World Applications
The publication includes two case studies:
- PenSam Pension Fund (Denmark): Demonstrates a framework for constructing net-zero-aligned portfolios.
- Huzhou City (China): Highlights municipal-level green and transition finance strategies.
Access the full guide: Investment Innovations Toward Achieving Net Zero: Voices of Influence.
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