9th March 2020 – German sovereign wealth fund KENFO has become the 21st member of the UN-convened Net-Zero Asset Owner Alliance, bringing the total assets under management (AUM) to approximately US $ 4.6 trillion.
By joining the Net-Zero Asset Owner Alliance, KENFO has committed to transitioning its investment portfolio to net-zero greenhouse gas emissions by 2050, consistent with a maximum temperature rise of 1.5°C target above pre-industrial temperatures, in accordance with the Paris Climate Agreement.
KENFO CEO Ms. Anja Mikus said: “KENFO is proud to become part of the alliance as the first sovereign fund. We believe that such a strong community will be an important contributor in aligning our finance industry and business environment with the goals of the Paris Agreement. As an institutional investor we need to understand the impact of the necessary transition towards a sustainable future on the economy. Global climate change probably is the most significant event of our time, affecting both the real economy and the financial markets. A growing number of companies integrate sustainability principles like reduction of carbon emissions into their strategies and operations because they know that long term financial success goes hand in hand with environmental stewardship, social responsibility and good governance.”
The Alliance is a group of the world’s largest pension funds, insurers and now sovereign wealth funds committing to fully decarbonize their portfolios to avoid a global temperature increase above 1.5°C. By joining the Alliance, members hold themselves accountable on progress by setting and publicly reporting on intermediate targets in line with the Paris Agreement.
The 21-member alliance is actively encouraging other investors to join the commitment of achieving carbon neutrality by 2050 demonstrating united investor action to align portfolios with a 1.5°C scenario.
NOTES TO EDITORS
Convened by UNEP’s Finance Initiative and the Principles for Responsible Investment (PRI), the Net-Zero Asset Owner Alliance is supported by WWF and is part of the Mission 2020 campaign, an initiative led by Christiana Figueres, former Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC).
Launched in September at the UN Secretary General’s Climate Action Summit, the Alliance was initiated by Allianz, Caisse des Dépôts (CDC), La Caisse de dépôt et placement du Québec (CDPQ), Folksam Group, PensionDanmark, and Swiss Re, who were joined by Alecta, AMF, CalPERS, Nordea Life and Pension, Storebrand and Zurich as founding members.
In November, AXA, Aviva, CNP Assurances and Fonds de Réserve pour les Retraites (FRR) joined, the Church of England’s investment bodies and Generali joined in January, Munich Re joined in February and ERAFP joined in March.