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Laxman Pai, Opalesque Asia:

Thirty of the world's largest investors collectively managing $5 trillion of assets agreed on concrete portfolio decarbonization targets that follow the Intergovernmental Panel on Climate Change (IPCC) 1.5 °C scenario for the next five years.

UN-convened Net-Zero Asset Owner Alliance members will implement deep greenhouse gas (GHG) emissions reductions in the 16% to 29% range by 2025 from 2019, amid likely rising global emissions in the same period.

Under the plan, dubbed the 2025 Target Setting Protocol, coalition members must set their own portfolio targets within the prescribed range in the first quarter of next year.

Companies further ahead in the decarbonization process are expected to set higher targets whereas targets at the lower edge of the range are expected from investors' facing more complex geographic or policy constraints.

The move is the most ambitious yet by the influential group, whose members own sizeable stakes in many of the world's top companies, and comes as pressure builds for asset owners to use their financial muscle to push for quicker change.

In the first quarter of 2021, individual Alliance members will set their own portfolio targets from different starting points concerning the level of carbon emissions currently contained within their portfolios.

Several Alliance members will set large reduction targets, while others have already made substantial progress in their journey to net-zero, the......................

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