Index providers, stock exchanges and other financial service providers have come together to join the Glasgow Financial Alliance for Net-Zero (GFANZ).
Moody’s and S&P Global, the London Stock Exchange and three leading index providers are among the 18* founding organisations of the Net Zero Financial Service Providers Alliance (NZFSPA).
As such, they have made a commitment that includes to align their relevant services and products to improve consistency in financial decision-making with achieving a net zero economy by 2050 at the latest.
For index providers, for example, the commitment will mean providing net-zero aligned indices by default for all main markets.
The Principles for Responsible Investment (PRI) will advise the NZFSPA and help coordinate with asset owners and asset managers that have made net-zero portfolio commitments.
The launch of the financial services provider net-zero initiative comes after that of the Net Zero Investment Consultants Initiative earlier this week, which also joins GFANZ.
Mark Carney, the UK prime minister’s finance adviser for COP26, said the new financial service providers alliance would be critical to helping the financial sector achieve net zero.
“By joining the alliance and GFANZ, these firms are committing to ensuring their products and services support a high ambition, credible net zero transition that we need to achieve our 1.5 degree goal,” he said.
Fiona Reynolds, chief executive officer at the PRI, said it was vital for net-zero considerations to be built in at every stage of the investment process.
“The resources made available by signatories to the [NZFSPA] initiative will enable strong implementation, helping investors move from commitment to action on net zero by setting clear and practical targets to enact meaningful change.”
*The 18 founding members of NZFSPA are: BDO, Bloomberg LP, Campbell Lutyens, Deloitte, De Vere, EY, Grant Thornton, KPMG, London Stock Exchange Group (LSEG), Minerva Analytics, Moody’s Corporation, Morningstar, MSCI, PwC, Singapore Exchange (SGX), Solactive, S&P Global.
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