United Nations-Convened Net Zero Asset Owner Alliance

General

Name of initiative United Nations-Convened Net Zero Asset Owner Alliance
LPAA initiative No
NAZCA Initiative Yes
Website address www.unepfi.org/net-zero-alliance
Related initiatives
Starting year 2019
End year
Secretariat United Nations Environment Programme, International Environment House

11-15 Chemin des Anémones, 1219 Chatelaine, Geneva, Switzerland AOA Secretariat, aoasecretariat@unpri.org and ERIC USHER Head, UNEP FI, eric.usher@un.or

Organisational structure Co-convened by UNEP FI and the PRI
Geographical coverage Global
Name of lead organisation UNEP
Type of lead organisation United Nations or Specialised agency
Location/Nationality of lead organisation Kenya

Description

Description The asset owner members of this Alliance commit to transitioning their investment portfolios to net-zero GHG emissions by 2050 consistent with a maximum temperature rise of 1.5°C above pre-industrial temperatures, taking into account the best available scientific knowledge including the findings of the IPCC, and regularly reporting on progress, including establishing intermediate targets every five years in line with Paris Agreement.
Objectives 1. Creation of credible, widely-accepted methods and guidelines enabling institutional investors to set and implement targets aimed at shifting the capital in their portfolios onto net-zero and 1.5 aligned GHG emissions pathways.

2. Creation of a reporting and accountability mechanism to annually track the progress made by investor members of the Alliance.

3. Development of a common understanding among institutional investors of where and how they can support an accelerated development of 'climate solutions' and break-through low/zero-carbon technologies.

4. Co-creation, by investors, scientific and corporate stakeholders, of 1.5 and net-zero aligned sectoral pathways.

5. Strengthening investor engagement with corporates and asset managers on net-zero targets and pathways.

6. Strengthening investor engagement on public policy and climate-related regulation.

Activities
One or two success stories achieved

Monitoring and Impacts

Sustainable Development Impact:
E SDG goals icons-individual-rgb-09.png   E SDG goals icons-individual-rgb-12.png   E SDG goals icons-individual-rgb-13.png   E SDG goals icons-individual-rgb-17.png  
Function of initiative Political dialogue, Technical dialogue
Activity of initiative Norms and standard setting, Knowledge production and innovation, Knowledge dissemination and exchange
Indicators
Goals
Comments on indicators and goals
How will goals be achieved
Have you changed or strenghtened your goals In its 2021 Protocol for Target-Setting the Alliance has agreed to pursue scenarios and pathways that in addition to being aligned with net-zero GHG emissions by 2050, and a temperature outcome of no more than 1.5, also need to be aligned with 'no or low overshoot'. This represents the highest possible form of ambition of economic decarbonisation.
Progress towards the goals 1. On target-setting methods & guidelines: in 2021 the Alliance, via its MRV Track, published its Protocol for intermediary target-setting (https://www.unepfi.org/publications/aoapublication/inaugural-2025-target-setting-protocol/) based on which Alliance members are currently setting and publishing their first intermediary targets to be attained by 2025. These targets can be found here: https://www.unepfi.org/net-zero-alliance/resources/member-targets/

2. On accountability and progress reporting: the Alliance, via its MRV Track, has developed a detailed and comprehensive form for members to both record their intermediary targets in a consistent and comparable manner and to annually report on progress towards those targets, in both quantitative and qualitative ways

3. On support for climate solutions: the Alliance, via its Financing Track, is developing a digital roadmap of key climate solutions, across sectors, and the avenues to provide capital for their accelerated development

4. On 1.5 and net-zero aligned sector pathways: the Alliance, via its MRV Track, has established a partnership with the University of Technology in Sydney (UTS) to further the One Earth Climate Model (OECM) and make it usable for investors in their net-zero strategies. A first output of that partnership can be found here: https://www.unepfi.org/publications/aoapublication/sectoral-pathways-to-net-zero-emissions/

5. On industry engagement: the Alliance, via its Engagement Track, has issued guidance to its members on how to better engage asset managers on climate-related corporate proxy voting: https://www.unepfi.org/wordpress/wp-content/uploads/2021/04/16-Elevating-Climate-Diligence-2.pdf; the Alliance, via its Engagement Track, has also issued an Alliance Position on Thermal Coal, among other Positions

6. On policy engagement: the Alliance, via its Policy Track, has issued a number of policy Positions, including on Governmental Carbon Pricing, the Covid Pandemic economic recovery and other matters.

In 2 years the Alliance has grown from 12 members with approximately USD 2 trillion in assets to 46 members with approximately USD 7 trillion in assets. In addition, this is the only finance sector Alliance through which members, already now, are setting their first set of intermediary targets to be achieved by 2025, in consistency with the long term target of net-zero by 2050 and alignment with a 1.5-consistent global carbon budget. In addition the Alliance has agreed on and published a plethora of resources, Positions and papers, across its various areas of operation (see above), has an established, transparent and multi-stakeholder governance, and 6 operational work tracks. As a result of this the Alliance is considered the gold standard for private sector platforms committed to net-zero, including by the UN SG Antonio Guterres.

How are you tracking progress of your initiative
Available reporting

Participants

Participants Number Names
Members 44  
Companies 0
Business organisations 0
Research and educational organisations 0
Non-governmental organisations 0
National states 0
Governmental actors 0
Regional / state / county actors 0
City / municipal actors 0
Intergovernmental organisations 0
Financial Institutions 44 AMF Pensionsförsäkring (Sweden),  ARCHIVE RECORD - Phoenix Group (United K.),  AXA Group (France),  Ak (Denmark),  Alecta PensionsföRsäKring öMsesidigt (Sweden),  Allianz SE (Germany),  Aviva (United K.),  BT Pension Scheme (United K.),  Bayerische Versorgungskammer (Germany),  CNP Assurances (France),  COE CC (United K.),  COE PB (United K.),  Caisse De Depot Et Placement Du QuéBec (Canada),  Caisse des Dépôts et Consignations - CDC (France),  Calpers (USA),  Cbus (Australia),  Danica Pension (Denmark),  David Rockefeller Fund (USA),  Etablissement Du RéGime Additionnel De La Fonction Publique - Erafp (France),  Folksam (Sweden),  Fonds De RéServe Pour Les Retraites - Frr (France),  HanseMerkur (Germany),  KENFO - Fonds zur Finanzierung der kerntechnischen Entsorgung (Germany),  Legal and General (United K.),  Lægernes Pension (Denmark),  Munich Re (Germany),  Nordea Life And Pension (Finland),  P+ (Denmark),  Pension Insurance Corporation (United K.),  PensionDanmark (Denmark),  Pfa Pension (Denmark),  Pka Pension (Denmark),  QBE Insurance Group (Australia),  Rothesay (United K.),  Societe Generale (France),  St. James Place (United K.),  Storebrand ASA (Norway),  Swiss Re (Switzerland),  The Cooperators (Australia),  UN Joint Staff Pension Fund - UNJSPF (USA),  Univest Company (Netherlands),  Wespath Investment Management (USA),  Zurich Insurance Group (Switzerland).
Faith based organisations 0
Other members 0
Supporting partners 0
Number of members in the years
Have only national states as participators No


Theme

Transport Agriculture Forestry Business Financial institutions Buildings Industry Waste Cities and subnational governments Short Term Pollutants International maritime transport Energy Supply Fluorinated gases Energy efficiency Renewable energy Supply chain emission reductions Adaptation Other Resilience Innovation Energy Access and Efficiency Private Finance
No No No No Yes No No No No No No No No No No No No No No No No Yes
Last update: 19 October 2021 09:14:36

Not only have national states as participators