NZIF 2.0: Implementation Guidance for Objectives and Targets - Section 7 Asset level targets:

The guidance is made available with the understanding and expectation that each user will, with due care and diligence, conduct its own investigations and evaluations, and seek its own professional advice, in considering Asset level targets: Alignment and investments’ financial performance, strategies, prospects or risks, and the suitability of any investment therein for purchase, holding or Secti. [...] Investors are investors are recommended to consider ‘fair recommended to disclose the decarbonisation share’ elements underpinning the distinction pathway used as a benchmark to assess the between developed and developing alignment of the sovereign bonds. [...] thousands of corporate issuers) percentage of sovereign bonds allocation of issuers and means that reducing the exposure to some sovereigns in the portfolio may force to issuers that are categorised as ‘aligned’ concentrated nature others to be overweighted, potentially leading to concentration risk and other to a net zero pathway or ‘achieving net of the market material risks. [...] Acknowledging nuance These include limited opportunities for investor engagement, the non-credible Concerns around threat of exit, the complex and multifaceted nature of sovereign entities, a lack IIGCC recognises achieving net zero targets for engagement of metrics to assess causation, and the ability to assess impact and ‘fair share’ sovereign bond portfolios will be particularly considerations. [...] innovative products and strategies for Disclosure sovereign alignment, including: A fair assessment of governments’ To enhance transparency, investors Ќ transition to net zero: Ninety One’s are recommended to disclose relevant Net Zero Sovereign Index information relating to the development of their alignment approach and setting of targets.