Geneva, 17 September 2026 – The UN-convened Net-Zero Asset Owner Alliance (NZAOA) today published an updated Call to Action to Private Market Asset Managers, setting out clear recommendations for how general partners (GPs) should manage climate risks and opportunities across the investments they hold on behalf of asset owners.

Private markets have moved from the margins to the core of institutional portfolios. Asset classes like private equity, private debt, infrastructure and real estate now represent a significant share of how pension funds, insurers and other long-term investors put money to work. Because of that shift, the way private market managers handle climate change has become crucial for asset owners’ ability to decarbonize, manage risk and capture long-term value.

Maria Clara Rendon, Senior Director of Responsible Investing, University Pension Plan Ontario (UPP) and Co-Lead of NZAOA’s Engagement Track, said: “Ultimately, this is about our responsibility as stewards of our members’ assets. Climate change is reshaping the investment landscape, and private market managers need to understand what those changes mean for the assets they invest in on our behalf. The strongest private market managers will consider both sides of the equation: how the climate transition affects individual investments and how their investment decisions can support the conditions for a successful transition. This Call to Action sets out practices to support these considerations and establishes a solid foundation for constructive dialogue between asset owners and their private market partners.”

Jimmy Yan, Head of ESG Integration, New York City Employees’ Retirement System (NYCERS) and Co-Lead of NZAOA’s Engagement Track said: “Fulfilling fiduciary duty means ensuring that the investments entrusted to us are resilient and well-positioned for the future. The recommendations in this Call to Action are designed to support that responsibility, offering practices that not only address climate risks but also enhance long-term performance. By integrating these principles into everyday decision-making, managers can safeguard the value of assets while contributing to a more stable and sustainable economy.”

Since the last Call to Action, data quality, reporting standards and industry initiatives have improved considerably. Yet climate ambition is still not consistently reflected in how many firms conduct their everyday investment practices.

The NZAOA also stresses that managers already have a wide range of tools at their disposal. Depending on the strategy, these can include ownership rights, board influence, value creation plans, due diligence, loan terms, covenants and borrower engagement. Managers should use these tools in proportion to their mandate and level of influence, consistent with fiduciary duty and investment objectives.

NZAOA’s recommendations to private market asset managers

The recommendations are cross-cutting, giving GPs and limited partners flexibility to apply them across different strategies and asset classes using judgment rather than a tick-box approach. The Call to Action sets out guiding principles, and while implementation will vary, flexibility should not dilute the level of climate ambition. Ultimately, the Call to Action is intended to provide greater clarity on what asset owners consider good practice and common foundation for more consistent due diligence, monitoring and engagement with private market managers.

Recommendations at a glance:

  1. Align the firm with a credible net-zero or portfolio-transition strategy focused on value creation and preservation, with consistent governance, investment and management incentives, ownership and engagement activities, and public messaging.
  2. Continue to build decision-useful climate data, continuously improving financed emissions data coverage and quality, disclosing progress transparently and developing data frameworks that are integrated into investment activities.
  3. Leverage portfolio engagement channels, value-creation strategies and lender engagement tools to deliver decarbonization opportunities, future-proof portfolio companies and advance climate targets.
  4. Integrate physical risk and adaptation analysis into investment decisions, management and resilience planning.
  5. Manage exposure to high emitting assets with discipline and use fit-for-purpose tools to avoid stranding risk.
  6. Evaluate opportunities to participate in and support transition finance credibly, with clear definitions and a focus on decarbonization of the real economy.
  7. In line with the investment strategy, scale investments in climate solutions with clear criteria and impact reporting.

Together, the recommendations identify the key areas of action. Six guiding principles underpin them, setting how they can be implemented across strategies and contexts while maintaining a consistent level of ambition:

NZAOA’s guiding principles for private market asset managers
  1. Consistency across the firm. Investment activity, ownership and engagement, advocacy, trade association participation and external messaging should complement one another and work toward the same outcome.
  2. Real economic outcomes. Focus on tangible results in ownership, engagement and investment activity — not only on reporting outputs.
  3. Act on available data. Use the information available today to address material climate risks and opportunities, while working to improve data reliability and consistency.
  4. Disclosure for accountability. Use transparency to support accountability, public discussion, and better decision-making.
  5. Flexibility without dilution. Allow flexibility in how principles are implemented, but never weaken the core expectations of addressing risk, pursuing opportunity, and making progress.
  6. Public voice matters. Managers should use their market presence and public voice to help advance market norms in line with the transition to a net-zero economy.
About the Net-Zero Asset Owner Alliance

The UN-convened Net-Zero Asset Owner Alliance is a group of 85 asset owners committed to transitioning their investment portfolios in support of a net-zero economy. Its signatories work to manage climate risk, capture long-term investment opportunities, and support real-economy progress on behalf of the pension holders, policyholders, and beneficiaries they serve.

Media contact:
Oliver Wagg
Communications Lead, NZAOA
oliver.wagg@un.org