The Net-Zero Asset Owner Alliance said total absolute financed greenhouse gas emissions for its 86 members fell 3.5% to 213.4 million tonnes of carbon dioxide equivalent in 2022 from 221.2 million tonnes a year earlier. — Bloomberg
NEW YORK: A US$9.5 trillion investor group that includes Allianz SE, Legal & General Plc and the California Public Employees’ Retirement System says greenhouse gas emissions enabled by its members’ lending and investment activities declined for the first time, albeit modestly.
In its latest annual progress report, the Net-Zero Asset Owner Alliance (NZAOA) said total absolute financed greenhouse gas emissions for its 86 members fell 3.5% to 213.4 million tonnes of carbon dioxide equivalent in 2022 from 221.2 million tonnes a year earlier.
While the decrease is small – 7.8 million tonnes is equivalent to taking 1.7 million cars off the road for a year – the result “makes us believe our approach works,” NZAOA chair Günther Thallinger said in an interview.
Another contributor was asset owners prioritising their allocations to the least carbon-intensive companies that operate in heavy-polluting industries such as steel.
Divestment of companies had the smallest impact, and the most progress was recorded by firms that joined NZAOA in the early years of the alliance.
The group, which was convened by the United Nations in 2019, started with six members and now has 86. The firms have all committed to eliminate their financed emissions on a net basis by 2050, with the goal of keeping global warming below 1.5C.
So far, 69 investors have set intermediate climate targets based on this. — Bloomberg
