COP27: Progress updates from net zero finance alliances

By Zhuan Faraj

As of 9 November 2022, a number of asset manager and asset owner groups have published progress updates coinciding with Finance Day of COP27.

The Net Zero Asset Managers initiative, which was launched in December 2020 with 30 initial signatories, has reported that it now has more than 291 signatories, representing over USD 66 trillion in assets under management (AUM). These signatories have all committed to aligning their portfolios with achieving net zero by 2050 or sooner, and 21 of those signatories have joined since the last target disclosure update in May 2022.

The Paris Aligned Asset Owners group (an outcome of the Paris Aligned Investment Initiative, which was established in May 2019) has also published a progress report. Its report assesses progress against each commitment in its earlier 10-point net zero commitment statement, namely: 

1. transitioning investments
2. achieving real economy emissions reductions
3. setting objectives and targets
4. limiting the use of offsets
5. undertaking direct and collective policy advocacy
6. implementing a stewardship and engagement strategy (with voting policy)
7. engaging with industry (including asset managers and data providers)
8. reducing operational emissions
9. disclosing objectives and targets and a plan for achieving goals
10. reporting annually on strategy and actions

Meanwhile, the Net Zero Asset Owners Alliance, formed in 2019, is reported today to stand at 80 members with USD 10.9 trillion in AUM.