Publication Type

Report

Version

publishedVersion

Publication Date

1-2023

Abstract

One of the seven sector-specific alliances under the Glasgow Financial Alliance for Net Zero (GFANZ), the United Nations-convened Net-Zero Asset Owner Alliance (NZAOA) is an international group of 74 institutional investors with a combined pool of assets under management (AUM) worth US$10.6 trillion.i NZAOA members are committed to transitioning their investments to netzero emissions by 2050, in line with the latest Intergovernmental Panel on Climate Change (IPCC) scientific research to follow “no or limited” overshoot trajectories to a 1.5°C scenario. NZAOA members also launched a more ambitious second edition of the Target Setting Protocol (TSP2) at the beginning of 2022. The TSP2 includes objectives for increased engagement, transparent reporting, and emissions reduction and target setting. Our first annual 2021 analysis of 46 NZAOA members showed patchy progress toward this commitment, with only 28% of members voting on climate-related shareholder proposals. NZAOA membership did not correlate with an increase in direct pro-climate voting compared to peers, and transparency around voting practices was very low. This year, we repeated the study for 731 NZAOA members using updated data for 2022. We assessed NZAOA members on their net-zero implementation progress, proxy voting on climate resolutions, and bondholding exposure to fossil fuels. This was evaluated through three interrelated analyses:

Discipline

Environmental Policy | Finance

Research Areas

Integrative Research Areas

First Page

1

Last Page

114

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