Paris Aligned Asset Owners (PAAO)

By Charlotte Owen-Burge | June 30, 2021

Paris Aligned Asset Owners (PAAO) is a global group of asset owners, mainly pension funds, committed to aligning their portfolios with the goals of the Paris Agreement. Signatories aim to deliver against a 10-point net zero commitment statement in a way that is consistent with their fiduciary duties. This includes transitioning investments to net zero portfolio emissions by 2050 or sooner and to draw on the Net Zero Investment Framework to achieve this, The group launched with 22 asset owners in March 2021, representing more than $1 trillion in assets, and today stands at 57 with more than $3.3 trillion in assets.

The investor networks (AIGCC, Ceres, IGCC and IIGCC) host a range of investor-led working groups to expand the Net Zero Investment Framework and offer ‘real-time’ implementation support. In 2023, the investor networks will further increase implementation support and regularly bring signatories together to collaborate on live implementation challenges and share innovations in net zero strategies. Asset owners are brought together via net zero “surgeries”, bootcamps, masterclasses and networks provide one-to-one support.

The initiative is establishing a process for Paris Aligned Asset Owners to report against progress annually, in line with TCFD and other reporting requirements.