Net-Zero Banking Alliance : In News
Wall Street’s biggest banks have quit Net-Zero Banking Alliance which had been one of the most popular clubs inside global finance.
- Bank-led and UN-convened, it is a group of leading global banks committed to aligning their lending, investment, and capital markets activities with net-zero greenhouse gas emissions by 2050.
- It is the climate accelerator for UNEP Financial Initiative’s Principles for Responsible Banking (PRB).
- It is governed by a Steering Group and Chair.
- The Steering Group is selected by member banks, and represents a diversity of geographies and business models.
- It is supported and convened by the UNEP FI Secretariat, and the United Nations also holds a seat on the Steering Group.
- It operates in compliance with the NZBA governance document adopted in October 2021 and updated in August 2023 and March 2024.
- All NZBA member banks have signed the Commitment Statement and pledged to follow the target setting and reporting processes outlined there and in the accompanying Guidelines for Climate Target Setting for Banks.
- The Commitment Statement is a pre-requisite for joining the Net-Zero Banking Alliance, and is signed by a bank’s CEO. All banks that have signed the commitment will:
- Transition the operational and attributable greenhouse gas (GHG) emissions from their lending and investment portfolios to align with pathways to net-zero by 2050 or sooner.
- Within 18 months of joining, set targets for 2030 or sooner and a 2050 target, with intermediary targets to be set every 5 years from 2030 onwards.
- Banks’ first 2030 targets will focus on priority sectors where the bank can have the most significant impact, ie. the most GHG-intensive sectors within their portfolios, with further sector targets to be set within 36 months.
- Annually publish absolute emissions and emissions intensity in line with best practice and within a year of setting targets.
- Take a robust approach to the role of offsets in transition plans.
- No Indian Bank is a member of this alliance.
