British International Investment (BII), the UK’s development finance institution, has launched a new set of guidelines to help fund managers operating in emerging markets set and implement credible net-zero targets. The initiative is designed to align with global climate goals and provide practical tools specifically tailored to the regulatory and operational contexts of developing economies.
BII’s Net Zero Target Setting Guidance aims to bridge a long-standing gap in climate action tools available to investors in the Global South. While momentum toward net-zero emissions by 2050 is growing among institutional investors, many fund managers in emerging markets face structural challenges—ranging from inconsistent regulation to limited access to climate data—that make it difficult to align capital allocation with science-based climate targets.
In response, the BII framework offers actionable steps for fund managers to align with key international standards, including the Science-Based Targets initiative (SBTi), the Net Zero Investment Framework (NZIF), and guidance from the Glasgow Financial Alliance for Net Zero (GFANZ). These frameworks are widely recognised across the financial sector for their role in shaping credible pathways to net-zero emissions.
BII emphasises that the financial industry has a pivotal role to play in achieving the goals of the Paris Agreement. Estimates suggest that nearly $3 trillion in annual investment will be required by 2030 to limit global temperature rise to 1.5°C, according to the International Energy Agency. Fund managers can be influential in this transition by redirecting capital flows and guiding portfolio companies towards decarbonisation.
“Achieving emissions reductions in line with 1.5°C is not just aspirational—it’s essential to avoid the most severe effects of climate change on people, businesses, and communities,” said a spokesperson from BII. The guidance, they added, reflects the institution’s mission to drive sustainable economic growth across its investment markets.
Developed through close consultation with BII’s own portfolio companies and fund managers, the guidance supports the mitigation pillar of the Paris Agreement. It complements other climate risk and adaptation tools, ensuring a holistic approach to portfolio management in a warming world.
“This guidance responds to a clear need for accessible, practical tools that are fit for purpose in emerging market contexts,” said BII. “By adopting the principles laid out, fund managers can strengthen their regulatory readiness while also enhancing their reputation and attracting capital aligned with climate-conscious strategies.”
The launch follows BII’s broader climate-focused investment efforts, including a recent [partnership with Idemitsu and Skye Renewables](https://esgnews.com/bii-and-idemitsu-collaborate-with-skye-renewables-to-drive-decarbonisation-in-south-east-asia/) to scale clean energy infrastructure in Southeast Asia.
Ultimately, BII’s message is one of collective action: “The journey to net zero requires collaboration, innovation, and commitment. Together, we can turn ambition into action.”
For more on how financial institutions are aligning with climate goals, see the [Science-Based Targets initiative](https://sciencebasedtargets.org/), the [Net Zero Investment Framework](https://www.iigcc.org/resource/net-zero-investment-framework-implementation-guide/), and the [Glasgow Financial Alliance for Net Zero](https://www.gfanzero.com/).
