The Paris Aligned Asset Owners (PAAO) initiative has published its first progress report since its launch in March 2021 showcasing the steps asset owners are taking to reach their net-zero goals.

The November 9 progress report includes 29 case studies and reveals how asset owners are developing a range of strategies and approaches to fulfil the criteria set by the PAAO 10-point commitment.

It highlighted that 98% of PAAO signatories that have disclosed targets have established either a quantitative target or a qualitative goal for increasing investments in climate solutions.

It was also found that many asset owners have started to communicate expectations for transitioning to their portfolio companies, including setting timebound milestones.

Where these objectives are not being met, the PAAO pointed out that signatories have escalated the situation. This is highlighted by the recent filing of a lawsuit against Volkswagen by several PAAO signatories after it allegedly “refused repeated attempts to reveal crucial information” on its corporate climate lobbying activities.

Alongside the progress report, initial target disclosures have also been published for a further 13 asset owners taking the total number of asset owners to 40.

The latest disclosures include targets from asset owners including AP7, Lloyds Banking Group Pensions Trustees Limited and Ilmarinen.