Glasgow Financial Alliance for Net Zero, a private sector-led initiative to reach net-zero emissions, on Wednesday proposed a framework for the financial sector to share net-zero transition plans.
GFANZ's 450 member firms from across the financial sector in 45 countries represent roughly 40% of global private financial assets. Presented in November at COP26, the global climate change conference in Glasgow, Scotland, GFANZ officials pledged to find projects to mobilize private finance, and to make climate-related reporting and risk management mainstream.
GFANZ is seeking public comment on the draft net-zero transition plan framework until July 27.
The organization defines a net-zero transition plan as goals, actions and accountability mechanisms to align an organization's business activities with a pathway for net-zero greenhouse gas emissions.
Mark Carney, co-chairman of GFANZ and the U.N. special envoy on climate action and finance, said in a news release that the common framework "will help ensure that capital will flow to companies that have robust and credible plans to reduce their emissions while growing jobs and our economies." Related resources "will guide the financial sector to support real-world decarbonization, not the false comfort of portfolio decarbonization," he added.
