Targeting Real Impact

The top 100
asset owners in the
world control close to
US$26 trillion
That’s more than
twice the value of
all the gold
in the world
Or the combined value of
the world’s 50 largest public companies
It’s enough to buy
all the residential property
in London — every house, flat,
mansion and penthouse
11 times over

In recent years, an increasing amount of capital has been allocated to combat climate change.

But are these allocations reducing emissions? Are they removing carbon from the atmosphere?

The answers start with targets
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How are asset owners setting their targets?

The scope of target setting

Set targets for specific asset classes
43%
Set whole portfolio targets
35%
Set specific targets for all individual funds
17%

What type of climate‑related targets do asset owners use?

Top 5 commonly used targets

49% Emissions reduction
43% Climate risk
39%
38%
28%
Portfolio coverage/
asset-level alignment
Implied
temperature rise
Amount invested in climate solutions

Do asset owners use different types of targets?

61% use the same target type for all climate-related fund targets

Beneath the surface, many asset owners expect it to become more challenging to meet climate targets while also maximising returns.

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“In future, we expect it to be increasingly difficult to achieve emissions reduction targets while delivering the best possible returns”
Select region
Global
53% of surveyed 217 asset owners agreed
59% of Southern Africa respondents agree
46% of Asia Pacific respondents agree
55% of Europe respondents agree
55% of North America respondents agree

Our research explores how asset owners currently use climate-related targets, and the potential of transition finance to help them balance their climate targets and financial goals.

Many transition finance assets are undervalued or high‑yielding securities, typically issued by high‑emitting or energy‑intensive companies. They are often excluded from the portfolios of climate‑focused investors.
Implemented responsibly, the transformation of companies funded by transition finance can support growth in revenue and profitability.
At the same time, asset owners can enable real cuts in emissions by helping these companies to apply credible climate-change strategies.
Find out more in our research report on how asset owners are targeting real-world climate impact.