27 July 2021
The industry-led, UN-convened Net-Zero Banking Alliance today appoints a 12-member-strong Steering Group and Chair to oversee decision-making and strategy, guiding the technical work and collective progress of the Alliance.
The new governance will allow the Alliance to drive collective and credible progress towards aligning members’ lending and investment portfolios with net-zero emissions by 2050. As well as providing a level of accountability for the Alliance, the new governance is designed to leverage the diversity of the membership, build consensus and ensure best-practice is able to be adopted worldwide.
The Steering Group was selected by member banks and represents a diversity of geography and business models. The 12 members are: Amalgamated Bank, Bank of America, Banorte, BBVA, CIB, Citi, HSBC, KB Financial Group Inc., La Banque Postale, Morgan Stanley, MUFG and Standard Chartered.
This Group meets at both the ‘Principal’ level, with C-suite delegates ensuring that the strategy is embedded at the heart of organisations, and at the ‘Representative’ level, with working-level delegates tackling the on-the-ground practicalities of delivering on the commitment. The Alliance is supported and convened by the UN Environment Programme Finance Initiative (UNEP FI) Secretariat, and the United Nations also holds a seat on the Steering Group.
Standard Chartered has been nominated as the Alliance Chair, driving the ambition and strategic relevance of the initiative. Simon Connell, Global Head of Sustainability Strategy for Standard Chartered, chairs for the Representative role, and Tracey McDermott, Group Head of Conduct, Financial Crime and Compliance for Standard Chartered, chairs for the Principal role.
Simon Connell, Chair of the Alliance, commented, “the Alliance is a critical force in accelerating the banking sector’s support for transition of the global economy to net-zero emissions, in line with a 1.5 degree scenario. This strong governance structure will allow us to build consensus, take a global view, and drive the strategy forward in order to reinforce and support members’ and their clients’ decarbonisation strategies.”
This news follows the launch of the Alliance in April 2021 which has since grown from 43 founding banks to 53 members from 27 countries with US$ 37 trillion in total assets – representing almost a quarter of banking assets worldwide. The Alliance recognises the vital role of banks in supporting the global transition of the real economy to net-zero emissions. All banks who are members of the Alliance have signed the Commitment Statement which is underpinned by the Guidelines for Climate Target Setting.
The Alliance is part of the Glasgow Financial Alliance for Net Zero (GFANZ), chaired by Mark Carney, which brings together over 250 financial institutions from 32 countries, representing over US$88 trillion in assets.