NZIF 2.0 is the latest iteration of the NZIF and is the most up to date and comprehensive net zero guidance for investors based on practical experience.

Launched in 2021, the Net Zero Investment Framework (‘the NZIF’) was a key output of PAII, a collaborative investor-led forum to support investors in aligning their portfolios and investment activities to the goals of the Paris Agreement.

Following three years of implementation, the NZIF is the most widely used resource to develop net zero strategies and transition plans by investors. To date, over 180 global investors have used the NZIF, either fully or partially, to support their PAAO or Net Zero Asset Managers (NZAM) commitment – although its reach and use extends to investors outside of these initiatives too.

The Net Zero Investment Framework has been updated and published in June 2024 as ‘NZIF 2.0’. Developed following extensive consultation with over 200 investors, NZIF 2.0 is an evolution of the original framework and guidance. The ‘NZIF 2.0: Summary Guide’ provides an overview of what is necessary to understand NZIF at a high-level and is now the first resource that investors should refer to when considering implementing their net zero commitments and addressing climate risks and opportunities.

NZIF 2.0 includes updates to guidance on several asset classes, as well as some revised target terminology and criteria. Several key outputs (e.g. infrastructure and private equity components) have also been integrated into NZIF 2.0 and further guidance is due to be integrated into the Framework later in 2024. Overall, NZIF 2.0 represents an evolution of the previous version and remains firmly aligned with the PAAO commitment statement. It aims to make life easier for investors by bringing together the wide range of resources available to them all in one place.

The NZIF 2.0 Summary Guide provides an overview of what is necessary to understand NZIF at a high-level and is now the first resource that investors should refer to. Investors should view this guide as a gateway to other resources, guidance and latest thinking hosted and convened by the supporting network partners.

Existing targets remain valid, obviating the need for revisions, though signatories are expected to align their 5-year target updates with the latest guidance provided in this iteration.

The NZIF wheel highlights the interconnected nature of the different NZIF components. Each core area is equally important, with no hierarchical structure. The wheel illustrates that net zero strategies are more likely to be more effective when they simultaneously address the external environment, which can either facilitate or inhibit investor activities. This dynamic interaction among all elements highlights the necessity of a comprehensive and integrated approach to achieving net zero goals.

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For more signatory resources, reach out to your Network Partners: AIGCC, Ceres, IGCC, IIGCC.

IIGCC Resources: 

• The Supplementary Target Setting Guidance provides step-by-step guidance for investors implementing the recommendations of the Net Zero Investment Framework. The guidance supports asset owners utilising the Framework to establish their targets in line with the Paris Aligned Asset Owner commitment, covering asset and portfolio level target setting, case studies and downloadable worked examples.
• A portfolio testing report, setting out the results of an exercise to test the application of the Framework on five investor portfolios. This showed that investors can align portfolios in line with the recommendations of the Framework, and this is a no-regrets choice with scope for significant benefit over business-as-usual, with respect to managing climate-related risks.