Winning the Net Zero Pathway: The Critical Role of Asset Owners

As the largest owners and stewards of capital, asset owners play a critical role to reach our 2050 net zero goals. As asset owners take long-term investment horizons, they are uniquely positioned to construct purpose-driven portfolios and can intentionally create positive environmental and societal impacts. Unlike shorter-term investors who primarily focus on immediate financial returns, pension funds, sovereign wealth funds, insurers, and endowments, can better align their fiduciary duties to encompass long-term sustainability and societal impact, either through passive or active ownership in companies. Furthermore, there is a growing consensus among asset owners on the importance of adopting a multi-stakeholder approach to sustainable finance including active engagement with companies, regulators, and governments to achieve real-world net zero outcomes. This approach goes beyond regulatory compliance, emphasizing the need for genuine collaboration to drive sustainable practices.