Report: Net Zero Banking Alliance members fall short of expectations

ShareAction, a non-profit that supports responsible investment, has found “crucial gaps” in the net zero targets of some of the largest members of the Net Zero Banking Alliance, including a lack of interim 2030 goals and the omission of key sectors like chemicals and agriculture as well as capital markets activities from banks’ targets. The study also found a “widespread” use of intensity targets, which measure emissions in relation to output, rather than absolute emissions reduction targets.

ShareAction looked at the decarbonisation metrics of the lending and capital markets activities of 43 banks part of NZBA over the course of 18 months. Banks were selected because of their size and financing of fossil fuel companies. Overall, NZBA counts on 122 members representing about 40 per cent of global banking assets. By joining the alliance they commit to align their activities with 2050 net zero targets and use science-based targets to reduce emissions by 2030. They also become members of the Glasgow Financial Alliance for Net Zero, which has recently weakened its ties with the UN-backed Race to Zero campaign requesting companies to phase out exposure to unabated new fossil fuels.