NZAOA releases latest target-setting protocol covering all private assets

Written by Adam Cadle

18/04/2024

The UN-convened Net-Zero Asset Owner Alliance (NZAOA) has released the fourth edition of the Target-Setting Protocol, which now covers all private assets and will govern the next five years up to the critical milestone of halving emissions by 2030.

This latest protocol is streamlined into a standing document, to be updated as new methodologies evolve no more frequently than every twelve months. Furthermore, the protocol now covers private debt funds, directly held private debt, directly held real estate debt funds and residential mortgage loans, to ensure that high-emitting companies develop transition plans regardless of their ownership structure.

The NZAOA said the protocol demonstrates that its members remain firmly committed to achieving net-zero for all greenhouse gas emissions by 2050 and aligning with 1.5°C pathways, with no or limited overshoot. Under their commitment, members shall target 40 to 60% GHG emissions reductions by 2030 (compared to 2019) in line with IPCC Sixth Assessment Report estimates.

Günther Thallinger, board member Allianz SE and Alliance chair, said: “We must close the widening gap between our ambitions and the real economy, which is lagging behind science.

“The Alliance calls for an enabling policy environment—one that supports both investors and corporates in the transition to a low-carbon economy, in line with science and with due consideration of social impacts.”

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