This session features speakers from members of the Net Zero Financial Service Providers Alliance and relevant stakeholders. The meeting will document progress achieved since COP26 and provide an opportunity to discuss the agenda for the net zero activities of exchanges and other financial service providers around the world.
Achieving the objectives agreed in the Paris Agreement to limit global temperature increases to well below 2°C from pre-industrial levels and striving for 1.5°C, will require ambitious action from all parts of the economy. Alongside governmental policy commitments and corporate responses, financial institutions will need to develop transparent and tangible action plans in the short and long term, executing realistic strategies underpinned by robust, science-based targets and consistent with the principles of a just transition.
The window for action is small. The UN-backed Race to Zero campaign (which convenes non-state actors, including companies, cities, regions, financial and educational institutions) spotlights the need for emissions to halve by 2030 and reach net zero by 2050 to avoid irreversible damage from the effects of climate change.
A growing number of financial institutions, including the world’s largest financial service providers, investment managers, banks, asset owners, insurers and investment consultants, have acknowledged this challenge, making commitments to set targets aligned with the Paris Agreement. The Glasgow Financial Alliance for Net Zero (GFANZ), launched in the run up to COP26, is a global coalition formed to assemble these net zero financial sector-specific initiatives from across the globe into one industry-wide strategic alliance.
Financial Service Providers, including stock exchanges, are uniquely positioned to advance responses to climate imperatives through a series of mechanisms that can act as levers for change. The role of most service providers in tackling climate action is rooted in their roles as influencers, educators and information gateways. Their unique networks and experience can contribute to addressing climate change via capital markets. Working with and learning from their peers can play an essential role in achieving ambitious global net zero targets.
- What are the targets for net zero action that NZFSPA members have set?
- How can exchanges assist in implementing high-quality climate disclosure among their issuers?
- How do markets connect climate disclosure to investment?
- What product innovation can service providers leverage to finance climate solutions?
- What can exchanges do to lead by example?