Net-Zero Asset Owner Alliance calls on companies and data providers to provide critical sector data – United Nations Environment – Finance Initiative
Since the inaugural Goal Setting Protocol in 2021, the Net Zero Asset Owner Alliance has envisioned strong science-based goals for all members. The formulation of sectoral objectives is a crucial aspect of the Alliance’s objective setting approach. Comprising $10.6T and 74 members worldwide, the Alliance believes that sector goals are invaluable tools for financial institutions to achieve real reductions in greenhouse gas (GHG) emissions because they can incentivize the flow of capital to the most carbon-efficient companies in their sector.
However, sectoral data from companies in the real economy remains insufficient, unreliable, incomparable or non-existent. As a result, investors are unable to fully steer investment portfolios in line with sector decarbonization trajectories or set science-based sector-level targets. Recent regulatory consultations, led by the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG), have also highlighted the importance of access to sector data.
Therefore, in order to continue investing and providing capital to transform even hard-to-shrink sectors, the Alliance urgently calls on all real economy companies in the following sectors to prepare and transparently disclose plans forward-looking transition to decarbonization in accordance with disclosure frameworks such as the Task Force on Climate-Related Financial Disclosures (TCFD), ISSB and EFRAG. In particular, we call on companies to provide current data as well as forward-looking guidance, including five- and ten-year goals. The Alliance also calls on data providers to support the collection and dissemination of the following metrics.
We call on all companies to start disclosing the aforementioned data as soon as possible. Alliance investors encourage companies to report annually on progress against these KPIs; this data may be provided through companies’ TCFD disclosures, sustainability reports and/or through other data providers.
We call on all regulators and policy makers to start exploring the inclusion of the above measures in relevant policies. We call on all global net-zero initiatives (Race to Zero, GFANZ and beyond) to continue to support this call and others for transparency and data availability. We invite others to endorse this call or make similar requests.
About the United Nations-convened Net-Zero Asset Owner Alliance
The 74 members of the Net-Zero Asset Owner Alliance, convened by the United Nations, have pledged to i) move their investment portfolios to net zero GHG emissions by 2050, in line with a maximum temperature increase 1.5°C above pre-industrial levels; ii) set milestones every five years, and iii) report progress regularly. The Alliance is convened by the UNEP Finance Initiative and the Principles for Responsible Investment (PRI). The Alliance is supported by WWF and Global Optimism. For more information on the Alliance, click here https://www.unepfi.org/net-zero-alliance/