The Net Zero Financial Services Providers Alliance (NZFSPA) is a sector-specific alliance in The Glasgow Financial Alliance for Net Zero (GFANZ). It’s comprised of 23 financial services providers which have committed to supporting the global goal of net zero greenhouse gas emissions by 2050 or sooner, in line with the ambition to limit the global temperature increase to 1.5 degrees above pre-industrial leaves.

Financial services providers have huge influence in all sectors of the world’s economy and therefore need to be at the forefront of decarbonisation and the push for net zero. Financial services companies must ensure that their own operations are sustainable as well as influencing clients and stakeholders to strive to reduce their emissions.

The NZFSPA was launched during Climate Week NYC 2021 by 17 founding organisations. After increased awareness during Cop26 in Glasgow, an additional 6 financial services organisations joined the Alliance. The NZFSPA brings together stock exchanges, rating agencies auditors and index providers to focus their operations on achieve net zero carbon emissions. By joining the NZFSPA, financial services companies therefore join the Glasgow Financial Alliance for Net Zero (GFANZ), the overarching Alliance bringing together all areas of the financial sector to accelerate the transition to a net zero economy.

The Net Zero Financial Services Providers Alliance is still very much in its infancy, with additional regulatory information still to be released. The Alliance will soon develop a target setting framework for the services and products they offer and how these will transform over time to promote a net zero economy.
When agreeing to join the NZFSPA, the organisations agree to making eight main commitments. These commitments cover:

  • Aligning all services and products to achieve net zero greenhouse gases by 2050 or sooner
  • Adopting methodologies and best practice to improve the calculation of their carbon emissions
  • Setting an interim target to 2025. The target should reflect the way in which the action taken will help to reach the interim target of a fair share of the 50% global reduction in carbon emissions needed by 2030
  • Addressing operational impacts by setting targets across all operation emissions (scope 1 and 2 and, where material, 3) in line with 1.5 degree pathway. Set interim science-based reduction targets within 12 months of joining
  • Raising the importance and implications of net zero targets with key business stakeholders and understanding what the business can do to reduce its impact
  • Supporting the development of products and services that support the net zero transition
  • Proactively engaging with stakeholder and policy makers on corporate and industry action that support a net zero transition
  • Disclosing and publishing climate related risks aligned to the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD)

The NZFSPA recognises the importance of its role to support the goal of net zero greenhouse gas emissions by 2050 or sooner, and the impact it can have on clients and stakeholders within the sector.

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