Request Free Trial
November 9, 2022

NZBA’s view: good progress but more is needed on intermediate targets

The Net Zero Banking Alliance has published its first progress report today, after the UN-backed initiative was launched last April. In it, it said that deadline for setting targets had been mostly respected with some members setting their first targets ahead of the 18-month deadline.

The large majority of members that were due to submit targets by October 21 did, says NZBA, with an additional bank filing a few days later. Including newer members, which are expected to publish targets at a later date, 51 per cent of all NZBA banks have now set intermediate net zero targets.

Still, in the report, the alliance recognises that “action must be accelerated”. It says that “on average,
members that submitted by 1st September have set intermediate targets in just under three sectors out of the nine climate-intensive sectors listed in the Guidelines. It is unlikely that this small number of sectors covers the significant majority of emissions. As part of the commitment, action must therefore be accelerated to ensure intermediate targets are set within 36 months after joining which cover all, or a substantial majority of, bank attributable emissions across all sectors.”

In a note accompanying the report, Eric Usher, head of the UN Environment Programme Finance Initiative, said: “Very rarely is a first attempt perfect. But this report demonstrates exceptional progress for the Alliance and for the global banking industry. Much of the 60% of the global banking industry outside the Alliance has made little effort to decarbonise.”

Read the report

Photo credit: Getty Images

A service from the Financial Times