Q&A

About us

What is the Net Zero Financial Service Providers Alliance?

Who are the signatories?

Why do we need the Net Zero Financial Service Providers Alliance?

How is the Net Zero Financial Service Providers Alliance different from other net zero investment alliances?

How does this go beyond what Service Providers are already doing?

Shouldn’t governments be leading on this type of Alliance?

How is this Alliance connected with other net zero alliances?


What Service Providers Do

Index Provider

Auditors

Stock Exchange

What do they do

A stock exchange is a marketplace where securities, such as equity securities, funds , bonds ETFs, ETPs, and derivatives, are bought and sold. All  products that are listed on an exchange are subject to certain disclosure and transparency requirements as outlined by the listings authority/securities market regulator of the respective jurisdiction. Depending on the structure of the market  the exchange may impose additional requirements.

Impact on GHG emissions:

Areas where stock exchanges can have most impact on global GHG emissions:

Exchanges can play a role in supporting a reduction in GHG emissions through both a market focus and an exchange focus. These activities often go hand-in hand and include[i] (for example):

  1. Leading by example in committing to net zero as an exchange and disclosing how the exchange is managing climate-related risks and opportunities such as climate-risk exposures of industries that make up a significant portion of the exchange’s listings.
  2. Influencing the market through education on the importance of net zero commitments and relevant frameworks and tools they can use to meet such commitments.
  3. Encouraging or requiring disclosures that allow providers of finance and others to assess the issuer’s performance on climate change.
  4. Providing products and services that support a transition to net zero, such as data products that enable performance evaluation or listings segments that support the listing of products aligned with net zero.

 

Research, rating and data providers


Our Commitment

How will the Net Zero Financial Service Providers Alliance effect change?

How are you going to support the global transition to net zero if you do not have the final say on the products and services your clients buy?

Isn’t 2050 too far away?

What scope of emissions should the Service Providers account for in their product and services to clients on net zero?


Draft Guidance: Application of the Commitment

#1 Align all relevant services and products to achieve net zero greenhouse gas emissions by 2050 or sooner, scaling and mainstreaming Paris Agreement-alignment into the core of our business.

#2 Build internal capability to understand the risks and opportunities of the net zero transition using best-practice net zero methodologies where they exist and, where methodologies or data are missing, proactively and collaboratively work to address those gaps.

#3 Set an interim target specifying a proportion of relevant services and products offered to be aligned to the net zero transition which reflect a fair share of the 50% global reduction in carbon emissions needed by 2030. Review and update such targets at least every five years with a view to increasing the proportion of services and products to achieve full alignment.

#4 Address our own operational impacts by setting science-based emissions reduction targets across all operational emissions (Scopes 1 and 2 and, where material, 3) in line with 1.5°C emissions pathways. Set interim science-based reduction targets within 12 months of joining for no later than 2030 across all operational emissions.

#5 Consistently raise with our key stakeholders the importance and implications of setting net zero targets and strategies across Scopes 1, 2 and 3 emissions and understanding the impact businesses can have to help reduce GHG emissions.

#6 Work to ensure our relevant services and products take into account the best available climate science, including credible emissions reduction pathways to net zero. Support innovation and prioritise our efforts where we have, or can have, the most significant impact. Support the development of products and services supporting the net zero transition.

#7 Advance our efforts by proactively engaging with stakeholders and policy-makers on corporate and industry action, as well as public policies, that support a net zero transition of economic sectors in line with science and with regard to social impacts. Contribute to GFANZ efforts within the financial services provider alliance, which will aim to bring together existing tools and alliances.

#8 Report progress, individually as firms signing this commitment, at least annually, including publishing disclosures aligned with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) and climate action plans.


Implementation & Monitoring

Are you going to increase the level of resources dedicated to this area as part of your commitment?

How will this Alliance ensure that its signatories comply with the commitments made?

How are you going to reconcile this commitment with conflicting obligations?

What about other ESG/sustainability issues?