Net Zero Investment Framework (NZIF) Implementation Guidance for Objectives and Targets

Disclaimer Net Zero Investment Framework: Implementation Guidance for Objectives and Targets...............3 Allwritten materials,communications,surveys and initiativesundertaken by IIGCC are designed solely to support investors inunderstandingrisks and opportunities associated with climatechange and take action to address them. Our work is conducted inaccordance with all relevant laws, legislation, rules and regulationsincluding data protection, competition laws and acting in concertrules. Participants in any initiative will not be asked for and mustnotdisclose or exchange strategic or competitively sensitiveinformation or conduct themselves in any way that could restrictcompetition between members or their investment companies orresult in members or the investment companies acting in concert.These materials serve as a guidance only and must not be usedfor competing companies to reach anticompetitive agreements.IIGCC’s materials and services to members do not include financial,legal or investment advice. Portfolio Decarbonisation Reference Objective: Listed equity, corporate fixed income,real estate, private equity and private debt......................................................................................................................16 Portfolio Decarbonisation Reference Objective: Sovereign bonds....................................................................52 As a foundational principle, IIGCC and the investor networks whohave contributed to this guidance do not require or seek collectivedecision-makingor action with respect to acquiring,holding,disposing and/or voting of securities. Investors are independentfiduciariesresponsible for their own investment and votingdecisions and must always act completely independently to settheir own strategies, policies and practices based on their ownbest interests and decision making and the overarching fiduciaryduties owed to their clients and beneficiaries for short, mediumand long–term value preservation as the case may be. The use ofparticular tools and guidance, including the scope of participationin any initiatives, is at the sole discretion of individual signatoriesand subject to their own due diligence. Allocation to climate solutions objective.............................................................................................................................60 Asset level targets: Across all asset classes......................................................................................................................68 Asset level targets: Listed equity and corporate fixed income.............................................................................78 No Financial Advice:The information contained in this guidanceis general in nature. It does not comprise, constitute or providepersonal, specific or individual recommendations or advice, of anykind. In particular, it does not comprise, constitute or provide, norshould it be relied upon as, investment or financial advice, a creditrating, an advertisement, an invitation, a confirmation, an offer, asolicitation, an inducement or a recommendation, to buy or sellany security or other financial, credit or lending product, to engagein any investment strategy or activity, nor an offer of any financialservice. While the authors have obtained information believed tobe reliable, they shall not be liable for any claims or losses of anynature in connection with information contained in this document,including but not limited to, lost profits or punitive or consequentialdamages. The guidance does not purport to quantify, and theauthors make no representation in relation to, the performance,strategy, prospects, credit worthiness or risk associated with the NZIF2.0, this guidance, strategy, or any investment, nor the achievabilityof any stated climate or stewardship targets. The guidance is madeavailable with the understanding and expectation that each userwill, with due care and diligence, conduct its own investigations andevaluations, and seek its own professional advice, in consideringinvestments’ financial performance, strategies, prospects or risks,and the suitability of any investment therein for purchase, holdingor sale within their portfolio. The information and opinions expressedin this document constitute a judgment as at the date indicatedand are subject to change without notice. The information maytherefore not be accurate or current. The information and opinionscontained in this document have been compiled or arrived atfrom sources believed to be reliable and in good faith, but norepresentation or warranty, express or implied, is made by thenetworks as to their accuracy, completeness or correctness. Asset level targets: Sovereign bonds......................................................................................................................................93 Asset level targets: Real estate...................................................................