The Net-Zero Banking Alliance was launched on the 21st April 2021 at the US Climate Action Week, where political and finance leaders came together to launch the Glasgow Finance Alliance for Net Zero.
Launch Press Release
21 April 2021 - MARK CARNEY, UN RACE TO ZERO CAMPAIGN AND COP26 PRESIDENCY LAUNCH NET ZERO FINANCIAL ALLIANCE WITH WORLD’S BIGGEST BANKS, ASSET OWNERS, ASSET MANAGERS AND INSURERS
Industry-led and UN-convened Net-Zero Banking Alliance also announced today, co-launched by the UNEP Finance Initiative and the Financial Services Taskforce of the Sustainable Markets Initiative
The Glasgow Financial Alliance for Net Zero (GFANZ), chaired by Mark Carney, UN Special Envoy on Climate Action and Finance, unites over 160 firms (together responsible for assets in excess of US$70 trillion 1) from the leading net zero initiatives across the financial system to accelerate the transition to net zero emissions by 2050 at the latest.
All GFANZ member alliances must be accredited by the UN Race to Zero campaign. They must use science-based guidelines to reach net zero emissions, cover all emission scopes, include 2030 interim target setting, and commit to transparent reporting and accounting in line with the UN Race to Zero criteria.
43 banks from 23 countries (with assets of US$28.5 trillion) form the Net-Zero Banking Alliance (NZBA) today - which joins GFANZ - with its members committing to align operational and attributable emissions from their portfolios with pathways to net-zero by 2050 or sooner.
The Net-Zero Banking Alliance is convened by the United Nations Environment Programme Finance Initiative and co-launched by the Prince of Wales’ Sustainable Markets Initiative Financial Services Taskforce (FSTF). A full list of banks can be found below in the Notes to Editors.
“The banking sector needs to continue to raise the bar for climate solutions and our commitment to the Net-Zero Banking Alliance today is another moment to double down on work to build the clean economy needed to fend off the worst impact of climate change. For nearly 100 years, Amalgamated has used its voice and financial resources to build a more just and sustainable world, which is why we took a leadership role in building the Alliance. The Net-Zero Banking Alliance is exactly the type of commitment needed to ensure that the finance sector continues climate focused investments into the future.”
Bank of America
Brian Moynihan, Co-Chair of the SMI, Chairman & Chief Executive
Bank of America
“This commitment to net-zero by the SMI financial services leaders is an example of the leadership that the CEOs of SMI companies can generate by working together. We will work closely with CEOs from other industry groups and others to continue to drive the other SMI priorities established by His Royal Highness in the Terra Carta earlier this year.”
Jes Staley, Group CEO
“The creation of GFANZ is a critical step in aligning and working collaboratively across industry to accelerate the transition to net zero emissions. We are pleased to join the Net-Zero Banking Alliance as a founding member and the Race to Zero campaign. It is our ambition to be a net-zero bank by 2050, and we have already begun to align our financing to the Paris Agreement, with specific targets and transparent reporting.”
Carlos Torres Vila, Group Chairman
Our world needs more ambition [and a global joint effort such as that of the Net-Zero Banking Alliance] to accelerate the change toward a net-zero economy by 2050. At BBVA, we already are carbon-neutral on our own activity and we also want to be so in our indirect emissions, taking into account those related to our clients. We want to lead this transformation, supporting society in its transition toward a more sustainable future.
Jean-Laurent Bonnafé, Director and Chief Executive Officer
"The signing of a common net-zero carbon commitment, with intermediate targets, is a decisive step in the financial sector’s mobilisation in the defense of our climate. Since COP 21 in 2015, BNP Paribas has committed to gradually aligning its credit portfolio with the objectives of the Paris Agreement. We began by disengaging from the most polluting activities like shale gas or coal and setting ourselves very ambitious targets for supporting green technologies. We are now mobilised to meet the broader challenge of systematically encouraging and supporting transformation for all our clients."
Gonzalo Gortázar, CEO
"We are very pleased to be part of this global alliance since its inception. Financial institutions can and must play a key role in driving the world towards Net-Zero and we at Caixabank want to be leading this effort. Our commitment to the promotion of sustainable development and the improvement of our planet is irrevocable."
Hussein Abaza, CEO and Board Member
"CIB’s journey to enact sustainable finance enabled us to realize the symbiotic relationship between the environment and finance. To sustain inclusive growth, banks should consciously revise their business models to factor in carbon emissions that result from their financial transactions. By joining the Net-Zero Banking Alliance, CIB is making a conscious commitment to collaborate with banks to chart meaningful and quantifiable progress towards carbon neutrality and advocate its scalability across the banking industry."
Manfred Knof, CEO
“By voluntarily committing ourselves to net-zero we underline our decisiveness to actively contribute to the sustainable transformation of society and the economy. In the run-up to this year's World Climate Conference in Glasgow, where the realisation of the Paris Climate Agreement will be the prevailing topic, we are thus sending a clear signal"
Oscar Hidalgo, CEO
"By signing the Net-Zero Banking Alliance, Coopeservidores is taking a step forward in the right path for the future of our country, the planet and the next generations, aligning our funding towards net zero emissions before 2050. By joining efforts for a second time with UNEP FI to create a more sustainable world, Coopeservidores reinforces the work we have been doing for the Principles for Responsible Banking signed in 2019, and in sustainability over a decade ago. We will strengthen our commitment with the neutrality of our operations, but we will also involve our credit portfolio in this effort and extend our responsibility by promoting more sustainable commercial alliances."
Christian Sewing, CEO
“Banks will play a crucial role in the fight against climate change, and the creation of the Net-Zero Banking Alliance is an important step forward to developing coordinated, accelerated action. We are proud to be a founding member of the Net-Zero Banking Alliance and to commit to making our portfolio net-zero carbon by 2050 at the latest. We look forward to playing an active role in the work of the alliance.”
Ecology Building Society
Paul Ellis, Chief Executive
Ecology Building Society
"Given the scale of the climate and ecological crisis the banking sector needs to work together in the urgent fight against catastrophic climate change, unlocking the financial solutions to deliver net-zero.
Ecology has been pioneering environmental finance for 40 years so signing up to the Net-Zero Banking Alliance wasn’t a difficult decision for us. Our members expect us to agitate for positive change and we hope that these concerted efforts will rapidly deliver both the ambition and actions to accelerate the shift to a low-carbon economy and build a sustainable future."
Carina Åkerström, CEO
"We recognise the vital role of banks in supporting the transition of society to net-zero emissions. We must ensure that we reduce our own direct climate impact, and plan to increase the pace even more. By joining the Net-Zero Banking Alliance we are not only supporting change but also committing to being an active partner in it – through giving advice, directing finance, engaging and collaborating with both our customers and other stakeholders."
Noel Quinn, Chair of SMI Financial Sector Taskforce and Group Chief Executive
“A commitment to financing the transition to net zero is essential. It’s important that the banking sector is committed to providing the financial support needed to help customers on that transition. But we have to establish a robust and transparent framework for monitoring progress against that objective and we want to set that standard for the banking industry. Industry-wide collaboration is essential in achieving that goal. I’m delighted that banks from the SMI Financial Services Taskforce have joined forces to establish the Net-Zero Banking Alliance.”
Birna Einarsdóttir, CEO
“Íslandsbanki is committed to reach net zero emissions by 2040, supporting Iceland’s ambitious Climate Action Plan and the Government’s declared objective of achieving carbon neutrality 10 years ahead of the Paris agreement. In order to reach this goal, it is vital that Icelandic businesses participate actively in measures that in many cases will demand large-scale investment. Íslandsbanki is determined to being a force for good in the Icelandic economy and drive the transition to a carbon neutral society. Teaming-up with leading global banks through the Net-Zero Banking Alliance will help accelerate our journey and hopefully inspire other banks to follow our lead.”
Olivier de Perregaux, CEO
"We are delighted to be one of the founding members of this pioneering initiative. For us, this commitment is another logical step in our comprehensive sustainability strategy. As an international private bank that operates around the globe, we are convinced that banking and the entire financial sector must become stronger advocates for sustainability – and the sooner, the better. This is the only way we can work together with other sectors and stakeholders to achieve the ambitious climate targets required to halt the catastrophic consequences of climate change. The measures of the Net-Zero Banking Alliance point the way and are an important step in the right direction."
Lloyds Banking Group
António Horta-Osório, Group Chief Executive
Lloyds Banking Group
“Climate change is the challenge of our generation and generations to come. Finance will play an important role in helping to incentivise a just and smooth transition. We’re committed to playing our part and proud to be part of the Net-Zero Banking Alliance. Lloyds will work with its customers, Government and the market to help reduce the emissions it finances by more than 50 per cent by 2030 and be net-zero carbon emissions by 2050 or sooner.”
Alison Rose, Chief Executive
"NatWest Group is proud to be one of the UK’s founding members of the Net-Zero Banking Alliance. This further demonstrates our ambition to be the country’s leading bank in helping to address climate change, one of the biggest shared challenges of our time.
We have already committed to halve the impact of our financed emissions by 2030 and we are now joining the ‘Business Ambition to 1.5C’, cementing our ambition to reach net zero before 2050. We are pleased to be working with the other founding members under the leadership of Mark Carney and Nigel Topping, highlighting the important role the banking sector has to play in supporting the transition to a low carbon economy."
Republic Financial Holdings
Nigel M. Baptiste, President & CEO
Republic Financial Holdings Limited
“The adverse effects of the climate crisis on the planet requires bold action and ambitious long-term commitments by all towards a sustainable environment for future generations. We believe the formation of the Net-Zero Banking Alliance is the first of such bold steps being undertaken by global banks and Republic Bank is proud to be one of the founding members towards this climate goal. We are committed to working with our clients to achieve the collective goal of net-zero carbon emissions by 2050 as one of several actions we intend to take on climate action.”
Ana Botin, Group Executive Chairman
“If we are to green the world’s economy, we need a truly global effort - banks, companies, governments, regulators and civil society working together at pace. At Santander we are proud to be part of the founding members of this new alliance, and to accelerate progress towards net-zero.”
Johan Torgeby, President & CEO
"Climate change is one of the biggest challenges of our times and as a bank we have an important role to play in supporting the transition towards a low-carbon society. We welcome the Net-Zero Banking Alliance initiative, and the opportunity to join forces with other committed members in order to reach the targets set out in the Paris Agreement."
Shinhan Financial Group
Cho Yong-byoung, President & CEO
Shinhan Financial Group
"Shinhan Financial Group hope to play a role in finance towards global Net-Zero through this participation in Net-Zero Banking Alliance. Based on the Shinhan ESG principle by 'Finance for Impact', Shinhan will cooperate with more stakeholders to create an eco-friendly world for future generations."
Frédéric Oudéa, CEO
"We collectively need to accelerate and step up the global ambition to meet the Paris Agreement goals. At Société Générale, we believe in the driving role of banks and in the power of coalitions to pave the way for impactful progress. In line with our corporate purpose and after having been a Founding Signatory of the Principles for Responsible Banking and the Collective Commitment for Climate Action, we are committed now to join the Net-Zero Banking Alliance to build a sustainable future as well as a manageable transition for our economies. This robust international coalition and common frameworks will create a true momentum, alongside our clients and other stakeholders, to limit global warming for generations to come."
Bill Winters, Group Chief Executive
"The greatest barrier to a net-zero future is financing the associated transition, especially in emerging markets where carbon-intensive sectors experience the most significant capital shortfall. We are proud to be joining the Net-Zero Banking Alliance, working together with our peers to support our clients and communities as they make the necessary changes for a cleaner, greener tomorrow."
Ralph Hamers, Group CEO
"Transitioning to a net zero global economy will be essential to avoid the most catastrophic outcomes from climate change. The Net-Zero Banking Alliance will provide a powerful platform and framework for the financial services sector to work on and to identify the fastest, most effective ways forward on this journey. At UBS, we are proud to be a founding member of this important initiative."
Peter Blom, Chief Executive Officer
"We welcome the Net-Zero Banking Alliance and the commitment of the members to adopt policies and strategies to reach a net-zero economy. We encourage all banks to set targets to reach net-zero well before 2050. We are running out of time and without strong action from all global stakeholders, the Paris climate goals will be out of reach. If that happens, future generations will be forced to cope with the adverse effects of uncontrolled climate change. Triodos Bank stands behind the most ambitious scenario of the Paris Agreement, limiting global temperature rise to at most 1.5°C. Today’s climate emergency can only be addressed when we all accept the responsibility to act and to do so together."
Christine Bergeron, CEO
“Financial institutions have an enormous economic and social footprint. We must rally that influence to take on the crisis facing our planet and support the shift to a low carbon economy that is clean and fair for everyone. Vancity is proud to be a founding member of the Net-Zero Banking Alliance and to support the global collective effort to limit warming to 1.5°C.”
1. The Glasgow Finance Alliance includes 160+ financial institutions across Race to Zero initiatives. These institutions include: 87 asset managers representing US$36.95 trillion in assets under management; 42 banks with US$28.5 trillion in assets; and 58 asset owners with US$7.4 trillion in assets under management. Each entity has made its own net zero commitment with potential overlap across initiatives, institutions and assets.