The first progress report of the UN-convened Net-Zero Asset Owner Alliance was released. This report covers the actions, activities and achievements of the Alliance and its members since its estab- lishment in September 2019.
“We acknowledge that the Alliance is operating within a global ecosystem comprised of governments, other financial institutions, corporates and individuals, and it is only by working together that we can achieve our collective goal. We are pleased to launch this report ahead of the UNFCCC COP26 milestone. We hope that our actions and commitments help to support a growing momentum for private sector actors and governments alike, in addressing climate change and enabling real-economy transition towards a world on a 1.5°C pathway”, as quoted from the report.
This report summarises how Alliance members have set targets according to the Proto- col. In some instances targets exceed recommended thresholds, in some instances they fall short. Details are found throughout the report, a brief summary includes:
Individual five-year targets
A core component of the Alliance is its Inaugural 2025 Target Setting Protocol. All Alli- ance members are expected to issue five-year decarbonisation targets and additional targets on Engagement, Sector Decarbonisation and Financing. This report is the first- ever aggregation of such targets. To date, members have set targets as referenced in this report. Members should use IPCC 1.5°C no and low overshoot pathways to inform their targets.
Individual Target Publication: Alliance members are required to publish their individ- ual targets within 12 months of joining. Alliance members have full control of the level of detail when publicising their individual targets but are required to submit detailed templates to the Alliance secretariat for aggregation.
Aggregate Target Reporting: Alliance members are required to report details of their individual targets to the Alliance secretariat within 12 months of joining, unless the Alli- ance reporting period is within three months of their joining (thus, targets should be communicated within maximum 15 months). Reporting is collected annually on an indi- vidual basis and made public in an anonymised aggregate form.
As of 30 June 2021 (the cut off date for this report), 29 members were due to report the details of their targets to the Alliance internally and publish their targets in the public domain. Twenty-nine Alliance members have submitted details of their targets to the Alliance (see column second from right), and 27 have disclosed their targets to the public (see links in far-right column). The Alliance secretariat is working with individual members to establish remediation plans to ensure all members are in full compliance where this may not currently be the case.
Members of the Net Zero Asset Owner Alliance plan to redue the emissions of companies in their portfolios in the range of 25-30 percent by 20205.
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