Net-Zero Investing

Net Zero's Impact on the Investment Industry Browse all Net-Zero Content

Latest Research and Policy


Increasingly, investors are recognizing that changes in the Earth’s climate have the potential to disrupt economic activities, which in turn can affect the risk and return of their investments. Governments also recognize the economic risks of climate change as well as the social, health, and national security risks. Scientific evidence shows a clear link between greenhouse gas emissions and climate change. As a result, nearly every nation has agreed to make efforts to reach global peaking of greenhouse gas emissions as soon as possible. This globally shared goal is often referred to as “net zero.”

Many investors—especially those with long-term horizons—expect attainment of net zero to help in achieving their investment objectives, reasoning that their long-term investment returns depend on the stability of natural ecosystems, societies, economies, and financial systems. Some of these investors have been collaborating through working groups, coalitions, and alliances to explore how they might support and contribute to net zero within their investment decisions and activities. “Net-zero investing,” as this approach is sometimes called, is in its infancy; knowledge and practice in this area are still evolving.

CFA Institute aims to educate and support investors who are interested in net-zero investing, recognizing that not all investors want to follow this approach. The work on net zero published by CFA Institute is guided by principles and positions that reflect its mission, vision, and values. CFA Institute products and publications address net zero both narrowly and broadly, reflecting the fact that net zero is a sub-topic of climate—which is a sub-topic of the environment, which is a sub-topic of ESG investing, responsible investing, and sustainable investing.


This page highlights recently published research, standards, and policies and offers foundational education on the topic of net zero from an investment perspective. More broadly, the CFA Institute Research and Policy Center website contains hundreds of articles, webinars, videos, podcasts, and blogs on a multitude of sustainability-related topics, including net-zero portfolio alignment, carbon markets, transition finance, corporate disclosures, ESG/climate data, green/climate bonds, climate risk analysis, supply chain climate exposure, and scenario analysis. These can be found through the Sustainable Investing page and by searching for keywords using the site’s search function.

Net zero and climate-related courses and certificates, including the Climate Risk, Valuation, and Investing Certificate, the Certificate in ESG Investing, and the Climate Finance online course can be found on the CFA Institute website.

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