UN-convened Net-Zero Asset Owner Alliance (2024)

FAQs

What is the net zero asset owner alliance? ›

The UN-convened Net-Zero Asset Owner Alliance (NZAOA) is a member-led initiative of institutional investors committed to transitioning their investment portfolios to net zero GHG emissions by 2050 – consistent with a maximum temperature rise of 1.5°C.

Sadly, net zero is nowhere near enough to save us from the impacts of climate change because it still leaves us with sharply elevated atmospheric CO₂ levels, and does not fully account for the loss of Earth's refrigerator (the ice stored at our poles, in mountain glaciers and in permafrost), or for the release of CO₂ ...

The 2025 Target Setting Protocol is the result of this process and is published on behalf of the Alliance. It sets out the Alliance's recommended approach to target setting and reporting on progress towards real world emissions reductions in line with established science and members' fiduciary duty.

Net Zero as the Goal

Net zero is the internationally agreed upon goal for mitigating global warming in the second half of the century. The IPCC concluded the need for net zero CO2 by 2050 to remain consistent with 1.5C.

The Net Zero Asset Managers initiative is a group of international asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.

Net-zero pledges can potentially worsen climate inequities. For example, wealthy countries, which include some of the largest historical polluters, are able to fund offset projects outside their borders while continuing to pollute at home.

The goal is to achieve what's known as net-zero emissions, where any greenhouse gases still entering the atmosphere are balanced by those being removed — and to do it as soon as we can. Scientists say it is possible to swiftly transform the ways we produce and consume energy.

To achieve net-zero emissions, rapid transformation will be required across all global systems — from how we power our economies, to how we transport people and goods and feed a growing population. For example, in pathways to 1.5 degrees C, zero-carbon sources will need to supply 98%-100% of electricity by 2050.

Background. The United Nations Net-Zero Banking Alliance (the 'Alliance') is a UN-convened, bank-led. alliance. The members commit to transition the operational and attributable GHG emis- sions from their lending and investment portfolios to align with pathways to net-zero by.

What is the net zero investment framework? ›

The Net Zero Investment Framework provides a common set of recommended actions, metrics and methodologies through which investors can maximise their contribution to achieving global net zero global emissions by 2050 or sooner.

What are the Predictions for Near Protocol in 2025? Analysts remain optimistic for 2025 as well. In September Near Protocol will reach a minimal price of €13.23. Near Protocol is projected to finish that year at a value of approximately €15.68.

When carbon-neutral refers to balancing out the total amount of carbon emissions, net-zero carbon means no carbon was emitted from the get-go, so no carbon needs to be captured or offset. For example, a company's building running entirely on solar, and using zero fossil fuels can label its energy as “zero carbon.”

The concept of net zero greenhouse gas emissions was first popularised by the Paris Agreement, a landmark deal that was agreed at the United Nations Climate Change Conference (COP21) to limit the impact of greenhouse gas emissions.

In simpler terms, reaching net zero means that you don't contribute any additional greenhouse gas to the atmosphere on balance – whatever you emit, you compensate with proportionate removal.

Alliance members include banks, insurers, asset owners, asset managers, financial service providers, and investment consultants.

Key noticeable differences: Among the three frameworks, SBTi for financial institutions can be used by both asset managers and asset owners as well as banks, while PAII only supports asset owners and asset managers; and NZAOA only asset owners (though certain aspects can be adapted for asset manager use).

We've all heard the term net zero, but what exactly does it mean? Put simply, net zero refers to the balance between the amount of greenhouse gas (GHG) that's produced and the amount that's removed from the atmosphere. It can be achieved through a combination of emission reduction and emission removal.