The CFA Institute has highlighted key solutions for achieving net-zero investment goals in its report, Net-Zero Investing: Solutions for Benchmarks, Incentives, and Time Horizons, released as COP29 kicks off in Azerbaijan.
The report emphasizes the need for a “holistic investment approach” that balances net-zero targets with traditional risk and return metrics.
Chris Fidler, head of global industry standards at CFA Institute, stated: “As the global drive for net-zero carbon emissions gains momentum, investors must adjust their strategies to meet both climate and financial objectives.
“Our research indicates that managing this transition requires more than just setting long-term climate targets—it involves integrating net-zero benchmarks, aligning incentives, and adopting appropriate time horizons to ensure meaningful progress. Without these adjustments, asset owners risk missing opportunities and failing to mitigate long-term systemic risks.”