Netoinvesteeringu

Netoinvesteeringu, also known as net zero investing, is a financial strategy that aims to achieve a net-zero carbon footprint by investing in companies and projects that are aligned with environmental, social, and governance (ESG) criteria. The primary goal of net zero investing is to contribute to the reduction of greenhouse gas emissions and promote sustainable development.

Net zero investing involves selecting investments that are consistent with the Paris Agreement's goal of limiting global warming to well below 2 degrees Celsius above pre-industrial levels. This approach typically focuses on sectors such as renewable energy, energy efficiency, sustainable agriculture, and green transportation. Investors may also consider the carbon footprint of their entire portfolio, including indirect emissions from supply chains and business operations.

The net zero investing strategy can take various forms, including:

1. Exclusion-based strategies, which exclude investments in companies with high carbon emissions or poor ESG performance.

2. Inclusion-based strategies, which focus on investing in companies and projects with strong ESG credentials.

3. Transition-based strategies, which aim to transition portfolios to a lower-carbon future by investing in companies that are actively reducing their carbon footprint.

Net zero investing is gaining traction among institutional investors, asset managers, and individual investors as they seek to align their financial goals with environmental sustainability. By integrating ESG factors into investment decisions, net zero investing can help drive innovation, create jobs, and contribute to a more resilient and equitable economy.