Financial Data & Services Providers Pledge to Align Products to Enable Capital Mobilization for Net Zero Economy
Launch Net Zero Financial Service Providers Alliance as part of GFANZ
A consortium of leading financial services and data providers announced today the formation of the Net Zero Financial Service Providers Alliance (NZFSPA), with commitments to align their relevant services and products to help enable investors and financiers achieve their net zero goals, and to set their own climate targets.
At launch, the alliance includes 18 of the leading investment advisors, credit rating agencies, auditors, exchanges, index providers, ESG research and data providers, and proxy research providers, including BDO, Campbell Lutyens, Deloitte, De Vere, EY, Grant Thornton, KPMG, London Stock Exchange Group (LSEG), Minerva Analytics, Moody’ Corporation, Morningstar, MSCI, PwC, Singapore Exchange (SGX), Solactive, S&P Global. The Principles of Responsible Investing (PRI), will advise the alliance and help coordinate with net zero asset owners and asset managers, and the UN Sustainable Stock Exchange initiative will also support the alliance.
By launching the new alliance, the companies aim to help mobilize the massive capital flows required to finance the transition to a net zero economy, by providing consistency of data and services needed by asset managers, banks, and other financial institutions to allocate capital to support climate initiatives and projects.
David Schwimmer, CEO of London Stock Exchange Group (LSEG), said:
“Financial markets are central to the world achieving net zero emissions. A new financial service provider’s alliance recognises the pivotal role market infrastructure providers such as LSEG have in mobilising the trillions needed to transition to a net zero world and support the growth of new green industries.”
In their own businesses, NZFSPA members have committed to set science-based targets to reduce operational emissions in line with limiting global temperature rises to 1.5°C, and to set meaningful interim targets for 2025.
Nigel Topping, the UN High Level Climate Champion for COP26 said:
“Financial services providers can help turn the trillions of dollars of capital already committed to net zero into the real and tangible investments we need. I welcome the ambition of this alliance in going beyond reaching net zero in their own operations to help turn ambition into action.”
The Net Zero Financial Service Providers Alliance will form part of the Glasgow Financial Alliance for Net Zero (GFANZ), part of the UN Race to Zero campaign. GFANZ was launched in April 2021, bringing together several net zero-focused financial industry alliances, including the Net Zero Asset Managers Initiative, the Net-Zero Asset Owner Alliance, and the Net Zero Banking Alliance, and now includes more than 250 firms, responsible for assets of over $88 trillion.
Mark Carney, the UK Prime Minister’s Finance Adviser for COP26, and GFANZ chair, said:
“The new Net Zero Financial Service Providers Alliance will be critical to helping the financial sector achieve net zero. By joining the alliance and GFANZ, these firms are committing to ensuring their products and services support a high ambition, credible net zero transition that we need to achieve our 1.5 degree goal.”
Fiona Reynolds, CEO at the Principles for Responsible Investment, added:
“We welcome today’s announcement on the formation of the new Net Zero Service Providers initiative. It has never been more vital for net zero considerations to be built in at every stage of the investment process. The resources made available by signatories to the initiative will enable strong implementation, helping investors move from commitment to action on net zero by setting clear and practical targets to enact meaningful change.”