Increasing Climate Ambition, Decreasing Emissions: The third ... - UNEP Finance Initiative
Increasing Climate Ambition, Decreasing Emissions: The third progress report of the Net-Zero Asset Owner Alliance - United Nations Environment - Finance Initiative
All members of the Net-Zero Asset Owner Alliance Alliance’s commit to: 1) transitioning their investment portfolios to net-zero greenhouse gas (GHG) emissions by 2050, 2) establishing intermediate targets every five years, and 3) reporting on progress annually. By submitting their data in the Alliance’s reporting cycle, the members meet the third requirement and the Alliance publishes this report to communicate transparently on members’ aggregated data.
The data presented in the report covers the targets members have set, the implementation of the Alliance’s positions, and the advances members have made while working in the Working Tracks of the Alliance.
Some of the most important data points include:
- 69 members with US$ 8.4 trillion in AuM have set intermediate climate targets, up from 44 members with $7.1 trillion in AuM in 2022.
- 100% coverage has been achieved in terms of proportion of members with intermediate targets who have set them for engagement.
- 67 members have set sub-portfolio targets, up from 41 in 2022. These members target, on average, carbon dioxide equivalent (CO2e) reduction ranges of 22%-32% for 2025 and 40%-60% for 2030.
- $380.6 billion has been dedicated to investments in climate solutions in 2023 by the Alliance’s members.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”