Recent updates to the NZAOA Target-Setting Protocol introduces regional flexibility to adapt global targets to diverse local markets, reinforced incentivization for asset manager engagement, and updated KPIs to enhance target-setting and stewardship practices.

Version 5 includes a quantitative investment target for climate solutions, focusing on funding green transition technologies, and a new “transition target” category to support high-emitting companies with credible net-zero plans. Additionally, it clarifies methodologies for private assets like infrastructure and real estate, ensuring a consistent approach to sustainable investment across portfolios. These refinements provide a more actionable pathway for investors to drive the transition to meet the goals of the Paris Agreement.

For further details, please see link to accompanying Background Document under Resources in right-hand navigation.