What Is Net Zero Investing? A UK Guide

Key Takeaway

Net zero investing is an investment approach that aligns a portfolio's underlying emissions with the goal of limiting global warming to 1.5°C — meaning the companies and assets held collectively reach net zero greenhouse gas emissions by 2050, with interim reductions along the way. UK investors can implement it through Paris-Aligned Benchmark (PAB) ETFs, climate transition funds, renewable infrastructure, and active stewardship — typically held inside a Stocks & Shares ISA or SIPP.