5^th March 2020 – French civil servant pensions fund ERAFP (Établissement de retraite additionnelle de la fonction publique) has become the 20^th asset owner to join the UN-convened Net-Zero Asset Owner Alliance, bringing the Alliance’s total assets under management (AUM) to over US$ 4.5 trillion.

By joining the Net-Zero Asset Owner Alliance, an initiative co-convened by PRI and UNEP FI, ERAFP is formalizing its commitment to the decarbonization of its portfolio, with a view to achieving a carbon-neutral investment portfolio by 2050 and thus helping to prevent the global temperature from rising above the 1.5°C target set by the Paris Climate Agreement.

ERAFP CEO Laurent Galzy said: “As an institutional investor, it is our responsibility to contribute to carbon neutrality by 2050. For that reason, for ERAFP, joining the Net-Zero Asset Owner Alliance is no longer a challenge but a duty: it will be a question of leading the way by engaging with companies, in order to adjust their business models and, as a result, to align our portfolio more closely with our long-term commitments.”

The Alliance will work closely with portfolio companies to change their business models and adopt climate friendly practices. By joining the Alliance, members hold themselves accountable on progress by setting and publicly reporting on intermediate targets in line with the Paris Agreement. The Alliance has already begun the process of establishing a work plan for 2020.

Fiona Reynolds CEO of PRI said: “We are delighted ERAFP are joining the Alliance, building on their climate action. We encourage more governments, companies and investors around the world to address the net zero challenge.”

Now 20-strong, the Alliance actively encourages additional investors to join by committing to a net-zero portfolio by 2050 in support of a global economy that delivers emissions reductions in line with scientifically determined targets.

NOTES TO EDITORS

Convened by UNEP’s Finance Initiative and the Principles for Responsible Investment (PRI), the Net-Zero Asset Owner Alliance is supported by WWF and is part of the Mission 2020 campaign, an initiative led by Christiana Figueres, former Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC).

Launched in September at the UN Secretary General’s Climate Action Summit, the Alliance was initiated by Allianz, Caisse des Dépôts (CDC), La Caisse de dépôt et placement du Québec (CDPQ), Folksam Group, PensionDanmark, and Swiss Re, who were joined by Alecta, AMF, CalPERS, Nordea Life and Pension, Storebrand and Zurich as founding members.

In November, AXA, Aviva, CNP Assurances and Fonds de Réserve pour les Retraites (FRR) joined, the Church of England’s investment bodies and Generali joined in January and Munich Re joined in February.