The Investment Company Institute ("ICI") Board of Governors unanimously adopted a statement detailing steps that funds can take to facilitate a transition toward a lower-carbon economy, "consistent with a fund's investment objectives and strategies, investors' interests, and a fund manager's fiduciary obligations."
To support industry efforts to facilitate the transition to net zero, ICI recommended the following actions:
- promote "transparent and useful climate disclosure";
- include a climate-related analysis that is consistent with the funds' investment objectives and strategies;
- participate in climate-related activities that are consistent with investors' interests and the funds' objectives and strategies;
- create and offer funds that seek to meet investor demand for products that would align with net-zero emissions by 2050 or sooner; and
- for funds with such climate-related objectives and strategies, periodically disclose their climate characteristics.
Primary Sources
- ICI Press Release: ICI Board Statement on Financing the Transition to Net Zero
- ICI Statement: Financing the Transition to Net Zero
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.