Crystal ball or wishful thinking? Reference pathways as tools for net zero investing in pension funds

Abstract

This thesis will examine the premonitions and parameters of two models for sustainable finance development: the International Energy Agency (IEA) model Net Zero by 2050, and the Net Zero Asset Owner Alliance (NZAOA) model One Earth Climate Model. It will also share observations from my internship period in Norway's largest pension fund, KLP, where reference pathways are a part of their climate strategy. The thesis will briefly compare and contrast the two climate models and their reference pathways. After investigating the prerequisites for using these models, the thesis looks at some likely consequences of integrating them into organisations, as well as how these models/pathways work as market devices with agencies of their own. Some key questions this thesis will ask, are: What can these models provide us? What are some of the background parameters for the models? How are these models actually integrated and used?