The Net Zero Investment Framework emphasizes systems stewardship to address climate change, biodiversity loss, and policy fragmentation by advocating for policy changes and influencing systems, rules, norms, and policies to promote decarbonization. This approach extends beyond company-level engagement to tackle systemic risks that can impact entire markets and economies, such as the transition of hard-to-abate sectors like the steel industry towards net zero emissions. Challenges in decarbonizing steel companies can be overcome with advancements, policy support, and demand for green steel, while enablers for systems stewardship include collaboration and collective action through platforms like IIGCC. Investors are increasingly focusing on systems stewardship, as demonstrated by initiatives like the Asset Owner Statement on Climate Stewardship and Aviva Investors' holistic approach to engaging at micro and macro levels, highlighting the importance of effective policy engagement and building relationships with policymakers to drive economic growth opportunities.
https://www.iigcc.org/insights/systems-stewardship-how-investors-are-responding-to-systemic-risk