UN Net-Zero Asset Owner Alliance welcomes roadmap to making credible pledges

Written by Michael Griffiths

08/11/2022

The UN-convened Net-Zero Asset Owner Alliance has welcomed plans for a UN roadmap to prevent net zero from being undermined by “false claims, ambiguity and greenwash”.

The roadmap was published in report by the UN High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities’ (HLEG).

According to the report, the HLEG echoes the Alliance’s view that the pursuit of net zero emissions by 2050 is “even more urgent “amid the ongoing energy security crisis, geopolitical uncertainty, and intensifying extreme weather events. HLEG’s recommendation that a net-zero pledge “must contain steppingstone targets for every five years” affirms the progress asset owner members have made setting and reporting on intermediate targets.

The Alliance’s second Progress Report indicated that 44 members have set short-term targets, for 2025 and 2030, covering two-thirds of the Alliance’s total assets under management, or US$7.1trn.

In a statement, the Alliance said it “wholeheartedly agrees” with the HLEG on the importance of mobilising investor influence, engagement and capital for low or zero emission investments in developing countries. Of particular note was the HLEG’s recommendation to create a level playing field by “developing regulation and standards starting with high-impact corporate emitters, including private and state-owned enterprises and financial institutions.”

“Alliance members’ long-term commitments and operational short-term decarbonisation targets cover their global investments, across both developed and developing countries,” the Alliance stated.

“In addition, the Progress Report showed that 35 members, representing a total of US$6.2trn AUM, set financing transition targets. Those members are reporting on their climate solutions investments, with the intention of progressively growing the invested amount.

“So far, Alliance members invested US$253bn into climate solutions in both developed and developing countries, with 30% of these investments being in the energy sector.”

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