Net Zero Finance

While finance companies themselves require very little effort to decarbonize (not much more than a regular accounting for their buildings and transport emissions), the finance industry has a much bigger role to play in leveraging capital to promote a net zero transition. The Oxford Martin Principles outline a clear framework for climate conscious investors, making the following requirements of firms seeking investment, commitment to net-zero emissions, a profitable net-zero business model and quantitative medium-term targets. 


 

Existing Efforts and Net Zero Coalitions in Finance

 

The UN has announced a Net Zero Asset Owners Alliance with USD 4 trillion in assets committed across the financial sector. 

 

The Climate Majority Project, which merged with 50/50 in 2018, is a non-profit organisation that works to mobilize shareholder power to push for greater corporate climate responsibility. They work with some of the world’s largest institutional investors and have created a coalition that calls on the top 20 publicly traded electric utility companies to commit to net zero emissions by 2050. Here is their report on net zero.