The UN-convened Net-Zero Asset Owner Alliance has issued a call to asset managers to collaborate in driving the development of blended finance vehicles, with the aim of drastically ramping up investment in climate solutions.

Blended finance de-risks investments allowing public financiers and other donors to use a small amount of their own resources as a first loss to mobilise large amount of private capital. Alliance members will work with a number of asset managers to design vehicles that meet certain core criteria and support them in refining their strategy to fit institutional investors’ needs.

Gunther Thallinger, Alliance chair and member of the board of management Allianz SE said: “We need to ensure asset managers are supporting us in achieving our climate-related targets. Asset management must change and fully incorporate these climate-related targets. Our interactions from the Request for Proposal (RFP), to mandate definition and then to performance dialogues will cover climate impact.”

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