A global group of financial powerhouses have teamed up to launch a new alliance that aims to put climate “at the heart of every professional financial decision”.
The 18 members of the Net Zero Financial Service Providers Alliance (NZFSPA) – which includes the world’s two largest credit agencies, six major audit networks, three leading index providers and two global stock exchanges – have committed to align their services and products to improve consistency in financial decision-making with achieving a net zero economy by 2050.
The organisations – including Deloitte, EY, KPMG, Moody’s, PwC and Grant Thornton – will also set interim targets for 2025 within 12 months of joining, with the commitments in addition to the organisations setting science-based goals for their own emissions and reporting on their progress.
The target should reflect the way in which the action taken will help to reach the UN Framework Convention on Climate Change’s (UNFCCC) interim target of a fair share of the 50% global reduction in carbon emissions needed by 2030.
They newly-launched alliance also joins the UN Race to Zero campaign’s Glasgow Financial Alliance for Net Zero (GFANZ), which now includes more than 250 financial firms responsible for more than $88 trillion (£64.2tn) committed to align capital with net zero.
Mark Carney, the UK Prime Minister’s Finance Adviser for COP26 and former Governor of the Bank of England said: “The new Net Zero Financial Service Providers Alliance will be critical to helping the financial sector achieve net zero. By joining the alliance and GFANZ, these firms are committing to ensuring their products and services support a high ambition, credible net zero transition that we need to achieve our 1.5 degree goal.”
The Principles of Responsible Investing, the UN-supported network of investors, will advise the alliance and help co-ordinate with net zero asset owners and managers.
COP26 President-Designate Alok Sharma added: “Helping to mobilise the finance needed to accelerate the transition to net zero by mid-century is crucial to save our planet from the worst effects of catastrophic climate change. These new commitments from major financial services providers show great climate leadership towards helping us to net zero.”