By Alfred Anate Mayaki

ANTALYA, Türkiye (Press Release) -- Asset owners play a vital role in directing capital toward a resilient, low-carbon economy. Their role in capital allocation, thought-leadership and investment decisions can support climate solutions, strengthen portfolio resilience and encourage companies to manage climate-related risks and opportunities, that is according to a new report published by United Nations Principles of Responsible Investment. As the report highlights, global climate discussions approach COP31, asset owner perspectives can help shape priorities for climate investment and long-term stewardship.

The report states that 'effective climate investment' must consider both financial outcomes and real-world impact. Asset owners may assess transition plans, climate-related risks, investment opportunities and the credibility of corporate commitments across their portfolios. Clear policies and consistent engagement may therefore help to align investment strategies with long-term climate goals.

Emphasising that enhanced collaboration among investors, policymakers and businesses may be a method of supporting progress by - improving disclosure, mobilising capital and addressing barriers to investment - the report continues:

"Property-related examples included investments in green retrofits, rooftop solar, water efficiency and resilience measures that can reduce operating costs, improve continuity of service and support occupancy. Several investors also described opportunities in transition assets that are not yet green, but have credible decarbonisation plans and commercially viable capital programmes."

"Private markets can provide stronger governance rights, clearer linkage between capital and outcomes, and greater flexibility than benchmark-constrained public-market mandates. Participants cited alternative-credit and blended structures – including debt-for-nature transactions, sustainability bonds and carbon-market-linked projects – as evidence that mainstream institutions can invest where financial risks are clearly structured and non-financial risks are allocated to parties able to manage them."

For more on this story, visit: UN PRI - News Website