The Glasgow Financial Alliance for Net Zero (GFANZ), chaired by Mark Carney, UN Special Envoy on Climate Action and Finance has been launched and brings together over 160 firms who together are responsible for assets in excess of $70 trillion from the leading net zero initiatives across the financial system to accelerate the transition to net zero emissions by 2050 at the latest.
GFANZ will work to mobilise the trillions of dollars necessary to build a global zero emissions economy and deliver the goals of the Paris Agreement. GFANZ will provide a forum for strategic coordination among the leadership of finance institutions from across the finance sector to accelerate the transition to a net zero economy. All initiatives in GFANZ require signatories to set science-aligned interim and long-term goals to reach net zero no later than 2050 in line with Race to Zero’s criteria. These goals are supplemented by member-determined short-term targets and action plans.
The industry-led Net-Zero Banking Alliance (NZBA), hosted by the United Nations Environment Programme Finance Initiative (UNEP FI) and co-launched by the Financial Services Taskforce (FSTF) of the Prince of Wales’ Sustainable Markets Initiative (SMI), is the newest net zero alliance. NZBA brings together an initial cohort of 43 of the world’s leading banks with a focus on delivering the banking sector’s ambition to align its climate commitments with the Paris Agreement goals with collaboration, rigour, and transparency.
The NZBA joins existing initiatives: the Net Zero Asset Managers Initiative and the UN-convened Net-Zero Asset Owner Alliance.
State Street Global Advisors, Trillium Asset Management, and Coutts are also joining the Net Zero Asset Managers Initiative bringing its membership to 87 members with assets under management representing over $37 trillion. The Paris Aligned Investment Initiative is joining the Race to Zero. The UN-convened Net Zero Asset Owner Alliance’s 37 members, with over $5.7 trillion assets under management, are demonstrating ambition by already setting science-aligned targets for 2025.
By bringing together leading existing and new net zero finance initiatives in the Race to Zero together in one sector-wide strategic forum, GFANZ will catalyse strategic and technical coordination on the steps firms need to take to align with a net zero future.
To unlock the trillions needed to achieve a resilient, zero emissions future, GFANZ will:
Mark Carney, UN Special Envoy for Climate Action and Finance and Prime Minister Boris Johnson’s Climate Finance Advisor for COP26, said:
“This is the breakthrough in mainstreaming climate finance the world needs. I welcome the leadership of the SMI Financial Services Task Force and other global banks for their new commitments to net zero and for joining forces with GFANZ, the gold standard for net zero commitments in the financial sector. Most fundamentally, GFANZ will act as the strategic forum to ensure the financial system works together to broaden, deepen, and accelerate the transition to a net zero economy.”