NZAOA members make ‘solid progress’ towards achieving 2025 emissions targets

Written by Adam Cadle

23/10/2023

Members of the UN-convened Net-Zero Asset Owner Alliance (NZAOA) are making “solid progress” towards achieving 2025 emission targets, Günther Thallinger, board member, Allianz SE and NZAOA chair, has said.

The Alliance’s third annual Progress Report revealed that total membership has grown by 12 to 86 over the past year (12 months to August), now with over US$9.5trn AuM. Through the 2023 reporting cycle, 69 members with US$8.4trn in AuM have set intermediate climate targets in line with the Alliance’s Target-Setting Protocol, up from 44 members with $7.1trn in AuM last year.

The number of members setting sub-portfolio targets (which encompass corporate debt, listed equity, and directly held real estate) grew from 41 in 2022 to 67 in 2023. Members set sub-portfolio targets within the carbon dioxide equivalent (CO2e) reduction ranges defined by the Alliance’s protocol: 22%-32% for 2025 and 40%-60% for 2030.

Almost all members setting intermediate targets defined one for climate solution investments. The absolute value invested in climate solutions reached $380.6bn in 2023, with most investments going towards the buildings and energy sectors.

“Alliance members are making solid progress towards achieving their 2025 emissions targets, showing that, step-by-step, the crucial long-term transition to achieve 1.5°C can be implemented,” Thallinger said.

Our work is supporting governments to implement their net-zero programmes by accelerating the reform of existing financial and investment policy frameworks.

“As we head towards at least 2.4°C warming with current climate pledges, we are at a pivotal moment to strengthen efforts for system-wide transformation. Alliance members act by implementing their intermediate targets. We call on others to do the same.”

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