Through this discussion paper, the UN-convened Net-Zero Asset Owner Alliance creates a foundation for asset owner expectations of asset managers regarding climate engagement. Specifically, the Alliance sets out principles, requests and practices that are applicable to all Alliance members’ asset managers.
The key principles for asset managers to take on board cover the following:
- Governance and integration;
- Setting and publishing a climate engagement strategy;
- Climate engagement practices; and
- Transparency and accountability on climate engagement.
Each of the principles is accompanied with a list of clear and detailed expectations for how asset managers can deliver on them. Thus, the paper provides Alliance members with a tool to
inform their asset manager selection, appointment, and monitoring (SAM) processes. Members may consider making the principles, requests, and practices from the paper an explicit expectation within the investment mandate for asset managers.