...The highly unequal distributions of both impacts from climate change, and of contributions to observed warming, make climate change a moral issue...A modern climate-specific set of principles is needed to provide investors with a minimal set of clear, fact-based guidance for climate-conscious investment that can be implemented by investors across the economy...

...[W]e propose three simple principles to help guide investors...Principle 1: All industries must eventually reach net-zero emissions, even if some industries do so before others. Companies should commit to a date (or a temperature increase, such as 1.5 °C or ‘well below 2 °C’) before which the net CO2 emissions associated with their activities (including both supply chains and products sold) will be zero….Principle 2: Company executives should have business plans that ensure the profitability of their business, and limit supply chain risks, once emissions reach net zero…Principle 3: Mid-term targets (for example, for 2030) that are directly relevant to achieving a net-zero business model, such as the rate and long-term trajectory of reductions in CO2 emissions, are vital to properly assess compatibility with the Paris Agreement…

…To illustrate the operation of the principles in practice…we apply them to three large listed companies: BHP Billiton (mining), Unilever (consumer goods), and Statkraft (utility). These case studies demonstrate that compliance with the principles is possible…