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Investment Consultants With $10 Trillion Make Net-Zero Pledge

Katie Moum

(Bloomberg) —

A dozen investment consultants advising on $10 trillion of assets are pledging to cut net greenhouse-gas emissions to zero by 2050.  

The group, including Cambridge Associates and Willis Towers Watson, started the Net Zero Investment Consultants Initiative, which identifies nine steps to reach that goal, according to a statement Monday. 

The first is to integrate advice on cutting emissions into their services. The investment advisers are also committing to help limit global warming to 1.5 degrees Celsius by setting emissions-reduction targets across their own operations.

The consultants — among the most influential gatekeepers to billions of dollars overseen by retirement plans and endowments — are joining the biggest investors and banks in forming groups to pledge climate goals as supercharged hurricanes, floods and wildfires sweep the globe. 

In March, BlackRock Inc. and Vanguard Group were among 43 investment firms that committed to cut emissions in their portfolios as part of the Net Zero Asset Managers Initiative.

Read more: Vanguard, BlackRock Join Investors Pledging to Hit Net Zero 

“Most of the institutional world right now does not have a target toward net zero,” Liqian Ma, global head of sustainable and impact investing at Boston-based Cambridge Associates, said in an interview. “You have to be investing in solutions that actually help reduce emissions in the real world like renewable infrastructure, sustainable agriculture and battery technology.”

The consultants also plan to help clients target a 50% emissions reduction by 2030 and advise on how they integrate climate risks into investments. 

–With assistance from Saijel Kishan.© 2021 Bloomberg L.P.

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