Industry ESG Alliances

No one organization, by itself, will solve the climate crisis or other ESG related challenges facing society. But we don’t have to go at it alone.  Indeed, the financial services industry has created numerous alliances, bringing together different categories of companies, to collaborate together towards sustainable development goals.

These alliances include (among others) the:

  • Principles for Responsible Investment

  • UN-Convened Net-Zero Banking Alliance

  • Net Zero Asset Managers Initiative

  • UN-Convened Net Zero Asset Owners Alliance

  • Net Zero Financial Services Provider Alliance

  • UN-Convened New Zero Insurance Alliance

  • Glasgow Alliance for Net Zero

  • Global Investors for Sustainable Development Alliance

  • FCLT Global

  • UN Better than Cash Alliance

  • Digital Finance for Climate Resilience

Principles for Responsible Investment (PRI)

PRI is a UN supported network of institutions who have signed on to six principles of responsible investment, which include:

  1. Incorporating ESG issues into investment analysis and decision-making processes.

  2. Being active owners and incorporate ESG issues into our ownership policies and practices

  3. Seeking appropriate disclosure on ESG issues by the entities in which we invest.

  4. Promoting acceptance and implementation of the Principles within the investment industry.

  5. Working together to enhance our effectiveness in implementing the Principles.

  6. Reporting on our activities and progress towards implementing the Principles.

PRI has developed a wide variety of ESG resources — from introductory materials to in-depth guides.

UN-Convened Net-Zero Banking Alliance (NZBA)

The UN-convened Net-Zero Banking Alliance (founded in 2021) brings together more than 100 banks worldwide, which are committed to aligning their lending and investment portfolios with net-zero emissions by 2050.

Specific commitments include:

  • Transitioning the operational and attributable GHG emissions from their lending and investment portfolios to align with pathways to net-zero by 2050 or sooner.

  • Setting 2030 targets and a 2050 target, with intermediary targets to be set every five years.

  • Publishing annually absolute emissions and emissions intensity in line with best practice and disclosing progress against a board-level reviewed transition strategy describing actions and climate-related sector policies.

  • Taking a robust approach to the role of offsets in transition plans.

Net Zero Asset Managers Initiative

The Net Zero Asset Managers initiative (launched in December 2020) is a global group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, and to supporting investing aligned with net zero emissions by 2050 or sooner. 

Members include more than 270 investment managers, including mutual funds, hedge funds, real estate investment management companies, alternative investment firms, insurers, and other asset management companies.

Specific commitments include:

  • Working with asset owner clients on decarbonisation goals, consistent with an ambition to reach net zero emissions by 2050 or sooner across all assets under management.

  • Setting interim targets for 2030, consistent with a fair share of the 50% global reduction in CO2

  •  Reviewing interim targets at least every five years, with a view to ratcheting up the proportion of AUM covered until 100% of assets are included.

  •  Taking account of portfolio Scope 1 and 2 emissions and, to the extent possible, material portfolio Scope 3 emissions

  •  Engaging with actors key to the investment system including credit rating agencies, auditors, stock exchanges, proxy advisers, investment consultants, and data and service providers, to ensure that products and services available to investors are consistent with the aim of achieving global net zero emissions by 2050 or sooner.

  •  Publishing TCFD disclosures, including a climate action plan, annually.

UN Convened Net Zero Asset Owner Alliance

The UN Convened Net Zero Asset Owners Alliance is a group of more than 70 institutional investors, including pension funds and insurance companies committed to transitioning their investment portfolios to net-zero greenhouse gas emissions by 2050.

Specific commitments include:

  • Transitioning investment portfolios to net-zero GHG emissions by 2050, and regularly reporting on progress, including establishing intermediate targets every five years.

  • Advocating for, and engaging on, corporate and industry action, as well as public policies, for a low-carbon transition of economic sectors.

Net Zero Financial Services Provider Alliance

The Net Zero Financial Services Provider Alliance is a global group of Financial Service Providers committed to achieving net zero greenhouse gas emissions by 2050 or sooner.  

Members include more than 20 consultants, accounting firms, stock exchanges, and ratings agencies.  

Specific commitments include:

  • Aligning all relevant services and products to achieve net zero greenhouse gas emissions by 2050 or sooner.

  •  Setting an interim target for relevant services and products, consistent with a fair share of the 50% global reduction in carbon emissions needed by 2030.

  • Reviewing and updating interim targets at least every five years.

  •  Addressing the firms’ operational impacts by setting science-based emissions reduction targets (including interim 2030 targets) across all operational emissions (Scopes 1 and 2 and, where material, 3).

  • Reporting on progress at least annually, including publishing disclosures aligned with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) and climate action plans.

UN-Convened Net Zero Insurance Alliance (NZIA)

The UN-convened Net-Zero Insurance Alliance is a group of leading insurers who have committed to transition their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas emissions. 

Specific commitments include:

  • Transitioning all operational and attributable greenhouse gas (GHG) emissions from its insurance and reinsurance underwriting  portfolios to net-zero emissions by 2050.

  • Establishing intermediate, science-based targets every five years.

  • ·Making their respective intermediate targets public and independently reporting publicly on  an annual  basis on the company’s progress against these targets.

  •  Supporting the implementation of corporate disclosure frameworks relevant to the net-zero transition and the insurance industry, such as the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), and considering emerging frameworks such as the Task Force on Nature-related Financial Disclosures (TNFD).

  •  Supporting the implementation of global policy frameworks relevant to the net-zero transition and  the insurance industry, such as the UN Sustainable  Development Goals (SDGs) and the Post-2020 Global Biodiversity Framework.

  •  Signing the UN Principles for Sustainable Insurance.

Glasgow Financial Alliance for Net Zero (GFANZ)

The Glasgow Financial Alliance for Net Zero (GFANZ) was launched in April to unite net-zero financial sector-specific alliances from across the globe into one industry-wide strategic alliance.

Existing and new net zero finance initiatives are part of the Alliance, including the Net Zero Asset Managers Initiative, the UN-convened Net-Zero Asset Owner Alliance and the newly launched Net-Zero Banking Alliance.  Members currently include more than 450 member firms from across the global financial sector, representing more than $130 trillion in assets under management and advice.

GFANZ is focused on three core areas that are critical to the net-zero transition:  (1) net-zero transition planning for financial institutions, (2) mobilizing capital to emerging markets and  developing economies to decarbonize and prosper in a net-zero economy, and (3) net-zero public policy.

Global Investors for Sustainable Development Alliance (GISDA)

The Global Investors for Sustainable Development (GISD) Alliance seeks to deliver concrete solutions to scale-up long-term finance and investment in sustainable development. The Alliance consists of 30 leaders of major global financial institutions and corporations.

The GISD Alliance supports the UN Sustainable Development Goals by increasing the supply of long-term investment for sustainable development worldwide, committing to develop and promote the use of innovative financing facilities and tools to scale up long-term investments, developing solutions to align investment portfolios with the SDGs, and putting forward solutions to improve disclosure.

FCLT Global

FCLT Global (Focusing Capital on the Long Term) is a non-profit whose mission is to focus capital on the long term to support a sustainable and prosperous economy. It’s members include dozens companies and investors worldwide working to develops actionable research and tools to drive long-term value creation. FCLT provides articles, toolkits, research, and other resources focused on this mission.

UN Better than Cash Alliance

The UN Better Than Cash Alliance is a partnership of governments, companies, and international organizations that accelerates the transition from cash to responsible digital payments to help achieve the Sustainable Development Goals.

The Alliance has 80 members committed to digitizing payments. These include governments, global brands, UN agencies and humanitarian non-governmental organization.

The Alliance has developed the Principles for Responsible Digital Payments, which include:

  1. Treating users fairly

  2. Ensuring funds are protected and accessible

  3. Prioritizing women

  4. Safeguarding client data

  5. Designing for individuals

  6. Being transparent, particularly on pricing

  7. Providing user choice through interoperability

  8. Making resources clear, quick and responsive

  9. Championing value chain accountability

Digital Finance for Climate Resilience

Digital Finance for Climate Resilience is a group focused on how  digital financial technologies can be catalytic in reducing the cost, expanding the reach, and improving the usability of climate resilience solutions. The organization is working on a framework for action to help catalyze the innovation ecosystem to used digital finance to assist the world’s most vulnerable populations.