One year on from COP26, GFANZ has re-emphasised the need for governments to help facilitate the transition to net zero. Join our growing army of changemakers and get unlimited access to our premium content. Atmospheric CO2 /Parts per Million /Annual Averages /Data Source: noaa.gov. Governments should step up with tougher regulation of financial institutions that continue to fund fossil fuel expansion.. - Investors who dont take sustainability factors into account arent fulfilling their fiduciary duty This falls short of the International Energy Agencys (IEA) estimated $1trn of annual investment needed by 2030 in order to reach net zero by 2050. For this report, the PAT has engaged with eleven of the world's foremost portfolio alignment method . GFANZ also noted that it would require a seven-fold increase totalling an additional $1trn annually by 2030 in investments into clean tech in emerging markets to reach net-zero by 2050. The new guidance states that determining which method of estimating is most appropriate will depend on the sector and activities. The Financial Institution Net-zero Transition Plan focused on four key aspects to drive net-zero actions seven sector-specific alliances including asset managers and owners, bankers, insurers, consultants, financial service providers and consultants. GFANZ the coalition launched at COP26 last year of, now, 550 financial institutions committed to net zero by 2050 today published its Actions to Mobilize Capital to Emerging Markets and Developing Economies report alongside its net-zero framework for finance firms, an updated call to action for policymakers and a guide for portfolio alignment. GFANZ is seeking feedback on the guidance and enhancements to critical inputs for measuring portfolio alignment by 12 September. The Glasgow Financial Alliance for Net Zero (GFANZ) has launched its suite of pre-COP resources, including the 2022 report on Portfolio Alignment Measurement from the GFANZ workstream chaired by Generation. Following the public comment period, GFANZ will release a final report prior to COP27 in Egypt's Sharm el-Sheikh this autumn. Thanks to all 50+ organizations who engaged with us to get the report to this stage,. According to GFANZ, financial practitioners should consider ranking the quality of their emissions data sources to incentivise company disclosures while ensuring data gaps do not block the development of portfolio alignment methodologies. With huge thanks to the GFANZ and Oliver Wyman team, especially . The Alliance came under fire last week when it was revealed to have dropped its partnership with the UNs Race to Zero campaign. Top1000funds.com is the market leading news and analysis site for the world's largest institutional investors.It focuses on leading the global investment industry to continuous improvement through case studies of best practice in governance and decision making, portfolio construction and efficient portfolio management, fees and costs, and sustainable investing. Green Finance Briefing: GFANZ moves a step ahead on net zero portfolio alignment. It explores the different types of use cases for those metrics and identifies the barriers to adoption. This is important work and work that must be done right, for many reasons. GFANZ co-chair and UN Special Envoy on Climate Action and Finance, Mark Carney, said: One year after COP26, GFANZ members are following through on their high-ambition net-zero commitments by creating a holistic framework for net zero transition strategies, setting interim targets, taking action to support real world decarbonization, and improving accountability. This report provided a critical assessment of the strengths and trade-offs of the options available to measure the alignment of financial portfolios with climate goals. The draft Glasgow Financial Alliance for Net Zero (GFANZ) Portfolio Alignment Measurement report is out. Portfolio Alignment Measurement GFANZ Policy Call to Action 26 31 43 54 64 78 84 3. Page topic: "Measuring Portfolio Alignment: Technical Supplement". Only a decade ago, governments began pushing the adoption of bulbs built around light-emitting diodes in both new and existing buildings. Portfolio Alignment Measurement - Financial institutions and climate data providers need to work together to address barriers to implementation and using portfolio alignment metrics; . Read more on the building-energy problem here: https://bit.ly/3ustCuG. GFANZsfirst annual progress report revealed that there are now more than 550 organisations participating in GFANZ, up from 160 when it was first founded. The coalition said the finance industry will need credible, forward-looking metrics to help it measure their progress on net-zero commitments and to reallocate capital to support the transition. It outlines the progress that GFANZ has driven in critical areas such . Portfolio alignment Finally, GFANZ has today released a guide to portfolio alignment for net zero. -New capability to examine data by 20yr vs. 100yr global warming potential This publication refers to a paper by Bolton, P., Kacpercyzk, M., Samama, F., "Net-zero carbon portfolio . Ever since its foundation, it has faced calls to clarify how it plans to get members to reduce their financed emissions in a science-based manner. Measuring Portfolio Alignment: Enhancement, Convergence, and Adoption aims to offer guidance on multiple technical aspects, structured around 9 'key judgments'. We deep dive into what climate metrics financial practitioners . "To measure portfolio alignment, financial practitioners should consider nine key decisions, the key design judgements," said Anja Ludzuweit, executive director of portfolio alignment measurement for GFANZ. The workstream was supported by the GFANZ Secretariat. Thwing Eastman: reports of ESGs death greatly exaggerated, IEA calls for rapid development of carbon storage, COP15: Day one addresses need to close biodiversity finance gap, Regulators urged to be bold as research finds rules boost revenues. https://lnkd.in/eyNPPc6B, Too little progress has been made in solving the building-energy problem, but LED lighting shows how quickly and efficiently change can come. The framework focuses on enabling four aspects of transition finance, including scaling investment in climate solutions, aligning business models with a science-based pathway to net-zero, supporting companies with credible transition plans or who are in the process of aligning with a science-based target. A GFANZ working group on portfolio alignment is taking up its work. David Blood, head of the portfolio alignment team at the COP26 private finance hub and co-founder of Generation Investment Management argues that portfolio alignment metrics will be a crucial catalyst of the transition to net zero. Duration: 30 minutes This webinar will discuss the August GFANZ Portfolio Alignment report, which provides a practitioner perspective for measuring the alignment of investment, lending, and underwriting activities with the goals of the Paris Agreement and critical 2050 global net-zero objectives. Plans Portfolio Alignment Measurement Managed Phaseout of High-emitting Assets Sectoral Pathways . Glasgow Financial Alliance for Net Zero (GFANZ) | 3,209 followers on LinkedIn. The new guidance sets out a credibility framework to assess emissions-reduction targets and corporate net zero-aligned transition plans to project future greenhouse gas emissions of portfolio companies. The private sector has stepped in with protein substitutes based on plants, a trend that holds a lot of promise in cutting over-consumption of meat and dairy products. The report examines the portfolio alignment metrics and the #GFANZ four key approaches. On Tuesday, the Glasgow Financial Alliance for Net Zero (GFANZ) proposed new and enhanced guidance on developing and using portfolio alignment metrics (PAMs . Jeanne Martin, ShareActions head of banking programme said she was extremely concerned about the decision amid the IEAs estimates. GFANZ report provides a clear framework to help financial institutions navigate net zero portfolio methodologies. This report sets the standard for measuring the alignment of financial portfolios with the 1.5C goal of the Paris Agreement. The report details our assessment of the global state of#sustainability from the power sector and industrial emissions to buildings, land, food and climate finance. Urgent need for business action on climate. Rather than accepting [company commitments] at face value, practitioners should evaluate their credibility.. Glasgow Financial Alliance for Net Zero is seeking public comment on new Portfolio Alignment Measurement Report, which aims to set out how financial firms can deliver on net zero goals. Meat consumption in rich regions like the United States and Europe is excessive, far beyond the protein levels required for adequate nutrition. -Updated country/sector-level data to include 2021 GFANZ Launches Net Zero Alignment Guidance By Jack Grogan-Fenn 1 min read 10th August 2022 The Glasgow Financial Alliance for Net Zero (GFANZ) has published a report proposing new and enhanced guidance on measuring the alignment of financial institutions' investment, lending, and underwriting activities with their net zero commitments. Vanguard, one of the largest investment managers in the world, announced today that it is withdrawing from the Net Zero Asset Managers initiative (NZAM), a major multi-trillion dollar group of investment managers committed to supporting the goal of net zero greenhouse gas emissions by 2050. Following the public comment period, GFANZ will release a final report prior to COP27 in Egypts Sharm el-Sheikh this autumn. 2. This report sets the standard for measuring the alignment of financial portfolios with the 1.5C goal of the Paris Agreement. If global consumption rises to such levels, the increase in emissions will be enormous. Faversham House Ltd 2022 edie news articles may be copied or forwarded for individual use only. - Sustainable investing can't change the world on its own; we need policy too The report reiterated an unprecedented level of multilateral collaboration will be required to mobilise the scale of capital required for 1.5 degrees C-aligned projects and outlined various projects and partnerships it had undertaken, but did not say how much capital those had been able to mobilise. Previously, Edward was with the Church Commissioners for England for 11 years, and was the head of responsible investment since 2014. Read more on what is needed to save nature here: https://bit.ly/3GkHttV, Todays Climate TRACE data release covers more than ever before: - Sustainable investing is capitalism at its best; it isn't going away | The Glasgow Financial Alliance for Net Zero (GFANZ) is a practitioner-led, global coalition of financial sector institutions and their sector-specific alliances. Published on: 12 Aug, 2022, 3:56 am. GFANZ is one of the multiple voluntary financial groups affiliated with GFANZ and Race to Zero, which share the same goals of reaching net zero but have guidelines specific to a sub-sector of finance. Thanks to all 50+ organizations who engaged with us to get the report to this stage, as . Action inspires action. -New capability to examine data by different #GHGs (carbon dioxide, methane, and nitrous oxide) Stay ahead of the curve with sustainability and energy newsletters from edie, Windsor CourtWood StEast GrinsteadRH19 1UZ, Sign up to our daily newsletter to stay ahead of the curve with the latest updates on sustainability and energy, Share GFANZ unveils new voluntary guidelines on reaching net-zero from edie on Facebook, Share GFANZ unveils new voluntary guidelines on reaching net-zero from edie on Twitter, Share GFANZ unveils new voluntary guidelines on reaching net-zero from edie on LinkedIn, Share GFANZ unveils new voluntary guidelines on reaching net-zero from edie via Email, Sustainability Leaders Forum 2022 (on-demand), Financial Institution Net-zero Transition Plan, GFANZ had cut its ties with the UN-backed Race to Zero campaign, Measuring Portfolio Alignment: Driving Enhancement, Convergence, and Adoption. | Platform 2022 Notified. This week, the Alliance has released a "pan-sector framework" for Financial Institution Net-Zero Transition Planning, and guidance on measuring portfolio alignment. The process of measuring alignment is forward-looking and considers a companys future emissions based on transition planning and emissions reduction commitments, she continued. No other reproduction or distribution is permitted without prior written consent. The Glasgow Financial Alliance for Net-Zero (GFANZ), accounting for investors with $150trn in assets, has published new voluntary guidance to help its financial members support the transition to net-zero, noting that a seven-fold increase in annual investment into renewables is required. - The investment community is adapting for the next chapter of capitalism, in which sustainable investing is mainstream the portfolio alignment team was formed by the un special envoy for climate and finance, mark carney, to respond to growing investor and lender interest in measuring portfolios' relative alignment to the objectives of the paris agreement, and to advance industry efforts to promote widespread adoption of consistent, robust, and decision-useful The . InvestmentNews ESG Summit & Film Festival. Measuring portfolio alignment with net-zero - GFANZ Workstream. Author: Portfolio Alignment Team Industry Group: Financial Guidance / Tool - 2020 As an increasing number of countries legislate for net zero, investors and lenders will need tools to identify risks and opportunities in the transition to a net zero economy. Its progress report emphasises that it wishes to continue working closely with the UN. Further guidance on measuring portfolio alignment and recent recommendations made by the launch on climate data steering committee and the Climate Data Steering Committee on the launch of Net Zero Data Public Utility (NZDPU). Content 2022 Bloomberg Finance L.P. All rights reserved. By submitting this information, I agree to the privacy policy and to learn more about products and services from GFANZ. The Glasgow Financial Alliance for Net Zero (GFANZ) has launched its suite of pre-COP resources, including the 2022 report on Portfolio Alignment Measurement from the GFANZ workstream chaired by Generation. Thanks to all 50+ organizations who engaged with us to get the report to this stage, as well as the technical leadership of Anja Ludzuweit, CFA, and with the support of Edward Mason and David Blood. Portfolio alignment measurement: supporting the development and effective . To promote unprecedented transparency on the net-zero transition, and address data gaps, inconsistencies, and inaccessibility, GFANZ is also supporting the efforts of the Climate Data Steering Committee to make recommendations on the design of an open-data utility, the Net-Zero Data Public Utility (NZDPU), announced earlier this year, a pilot of which is expected to be up and running in the second half of 2023. GFANZ also aims to drive greater levels of convergence on methodological best practice approaches and increase transparency on the underlying assumptions utilised in those evaluations. Asset managers should "measure and disclose the alignment of their portfolios consistent with" a climate scenario in which global temperatures rise 2C or lower (e.g., a Parisaligned temperature pathway), and "incorporate forward-looking alignment metrics into their targetsetting frameworks and management processes." The TCFD . The Portfolio Alignment Team (PAT) issued a report in 2020 titled Measuring Portfolio Alignment: Assessing the Position of Companies and Portfolios on the Path to Net Zero. With huge thanks to the GFANZ and Oliver Wyman team, especially . On 8 August, the chairs of the Glasgow Financial Alliance for Net Zero (Gfanz) - Mark Carney, Michael Bloomberg and Mary Schapiro - released a statement welcoming the UN Race to Zero's new minimum criteria requiring associated members to get out of all unabated fossil fuels. Source: GFANZ . Please login or Register to leave a comment. Last year over 3.5 million hectares of tropical forest was lost to #deforestation. the concept note on portfolio alignment metrics identifies the range of unresolved issues: which climate pathway scenario to use; how to project emissions at the portfolio company level; how to measure alignment with the net-zero goal; how to deal with retained versus divested emissions; ambiguity over timelines; the sheer number and significance GFANZ's Portfolio Alignment Measurement Report has been published to gain feedback from the finance sector on whether proposed frameworks will provide relevant metrics and data collection to ensure portfolios are 1.5C aligned. This Package provides access to the entire event, Executive Director of Portfolio Alignment Measurement. Thanks to all 50+ organizations who engaged with us to get the report to this stage, as well as the technical leadership of Anja Ludzuweit, CFA, and with the support of Edward Mason and David Blood. 2022 CONCEPT NOTE ON PORTFOLIO ALIGNMENT MEASUREMENT 2 Acknowledgements This report was developed by the GFANZ workstream on Portfolio Alignment Measurement with input from the GFANZ Principals Group, Steering Group, and Advisory Panel. https://lnkd.in/eE4kygcv, Glasgow Financial Alliance for Net Zero (GFANZ), Measuring-Portfolio-Alignment-Enhancement-Convergence-and-Adoption-November-2022, Institutional Investors Group on Climate Change (IIGCC), Opinion | ESG Investing Is Consistent With Fiduciary Duty, COP27 Financial Sector Call to Action on Gender-smart Climate Finance . Paltry results of measuring portfolio emissions. GFANZ uses the term "orderly transition" to refer to a net-zero transition in which both private sector action and public policy changes are early and ambitious, thereby limiting economic disruption related to the transition (e.g., mismatch . The consultation This brings total number of asset managers that have set initial targets to 169. All rights reserved. Finally, GFANZ has today released a guide to portfolio alignment for net zero. The Glasgow Financial Alliance for Net Zero (GFANZ), proposed new and enhanced guidance on measuring the alignment of financial institutions' investment, lending, and underwriting . Content Tags: Portfolio Management Transition Emissions Regional platform for GFANZ policy workstream Complements individual-country JETPs with a region-led forum for dialogue with regulators This information is confidential; it is not to be relied on by any 3rd party without prior written consent. Assets allocated to the energy transition reached just 67bn in 2021 across emerging and developing economies, the lowest level since 2017, a report from the Glasgow Financial Alliance for Net Zero (GFANZ) has found. Case study: Building a net-zero aligned portfolio. The report, "Failure by Design," focuses on the Net Zero Asset Managers Initiative (NZAM), one fifth of the five-part Glasgow Financial Alliance for Net Zero (GFANZ) family of sector-specific coalitions, including asset managers, asset owners, insurers, banks and financial service providers. On behalf of the PAT, the TCFD hosted a public consultation on Measuring Portfolio Alignment: Technical Supplement between June 7, 2021 and July 18 . The framework also claims that investors should manage the phase-out of high emitting assets that would likely become stranded under a net-zero transition, but GFANZ stopped short of cancelling support for fossil fuel firms as a whole. Building on the initiatives positive start, the focus must now be on supporting managers to increase their targets and turning commitments into action with an emphasis on supporting real world emission reductions without this, the likelihood of limiting temperature rises to no more than 1.5 degrees becomes more distant. Stephanie Pfeifer, CEO of IIGCC. All rights reserved. *GFANZ recently highlighted the decarbonization approach (which is central to the S&P Net Zero Carbon Budget Indices methodology) in its publication "Measuring Portfolio Alignment" (see page . This is available at www.gfanzero.com. In less than two years the Net Zero Asset Managers initiative has managed to significantly raise the scale of ambition towards net zero across the global asset management industry. Explore the full inventory here: https://climatetrace.org/, The Net Zero Asset Managers initiative has today announced initial targets for 86 investors. The 2021 PAT report identified three key categories of portfolio alignment metrics tools to support financial institutions' efforts: Binary target measurements measure the alignment of a portfolio with a given climate outcome based on the percentage of investments or counterparties in a portfolio with net-zero, Paris-aligned targets. GFANZ's proposed framework consists of three "conceptual steps": translating net zero-aligned and scenario-based carbon budgets into benchmarks, assessing company-level alignment against such benchmarks based on cumulative emissions, and aggregating company-level alignment at the portfolio level. - ESG analysis is a tool to advance sustainable investing; it isnt an outcome in itself The report also stipulates that GFANZ has dropped a requirement for its members to sign up to the UN-backed Race to Zero campaign. . Notably absent from GFANZ membership are the world's three largest banks Chinese banks that are all major providers of financing for fossil fuel projects all Russian and Indian banks . Together, they work to accelerate the world's transition to . GFANZ said the report includes "new and improved guidance to measure the alignment of financial institutions' investing, lending and underwriting activities towards net-zero commitments." It added that it was gathering feedback on proposed improvements to measure whether investment portfolios are targeting net zero. Previously, Anja worked closely with the 2018 UNEP FI investor pilot project and was a contributing author to the UNEP FI Changing Course publication. Press release https://lnkd.in/ep8xKHTa Individual signatory initial target disclosures https://lnkd.in/eg9vJrFk The great challenge is to make sure that the business of making and distributing batteries is as sustainable as it can be. SME News Service. Followed . The report aims to drive adoption of portfolio alignment metrics and meaningful convergence . In its updated call to action, the Alliance is asking governments to undertake their own net-zero transition planning sector by sector and has identified five areas for further action more transition planning, consensus around frameworks, address uncertainty of carbon markets, creating incentives for transitioning, and supporting emerging markets and developing economies with new architecture to transition. GFANZ opens public consultation on guidance document assessing portfolio alignment with net zero targets for the financial sector, but accurate measurement of climate risks remains an. The report outlined the PAT's views on portfolio alignment metrics and areas of further work as a resource for organizations interested in exploring portfolio alignment. GFANZ Progress Report GFANZ Progress Report Open navigation menu Close suggestionsSearchSearch enChange Language close menu Language English(selected) espaol portugus Bonhill Group plc provides news, events & research aimed at wealth managers, investment IFAs and other professional fund pickers and asset allocators in the UK, Europe, Middle East and Asia Pacific regions. These organisations collectively manage some $153trn of assets. GFANZ has stated that, going forward, members will be encouraged, but not required, to partner with the Race to Zero. Strengthening accessibility of GFANZ in APAC September 2022: Held Measuring Portfolio Alignment Mary Schapiro, vice chair of GFANZ, said: Growing global scrutiny of transition plans makes the need for business action on climate ever more urgent. The draft Glasgow Financial Alliance for Net Zero (GFANZ) Portfolio Alignment Measurement report is out. Created by: Phyllis Black. The draft Glasgow Financial Alliance for Net Zero (GFANZ) Portfolio Alignment Measurement report is out. If financial institutions are to deploy the capital required to usher in the net-zero transition, they need a way to measure whether their financing activities align to their ambition., She added: Building upon the implementation of sound financial sector and real-economy transition plans as well as science-based net-zero pathways, GFANZs Portfolio Alignment Measurement Report will help financial institutions use metrics to assess whether their portfolio companies are 1.5C-aligned or need resources to transition., David Blood, senior partner of GFANZ-member Generation Investment Management, added: Measuring portfolio alignment is essential for financial institutions to understand their progress in reaching net-zero and allocating capital to transition finance opportunities for the real-economy.. -#Emissionsdata for 70K+ individual sources worldwide Weekly round-up: August 8-12 1) GFANZ publishes guide on portfolio alignment metrics The world's largest climate finance initiative wants to improve how financial institutions track the alignment of their portfolios with net-zero goals. Building upon the implementation of sound financial sector and real-economy transition plans as well as science-based net-zero pathways, GFANZ's Portfolio Alignment Measurement Report will help financial institutions use metrics to assess whether their portfolio companies are 1.5 degrees C-aligned or need resources to transition." The draft Glasgow Financial Alliance for Net Zero (GFANZ) Portfolio Alignment Measurement report is out. Portfolio alignment Finally, GFANZ has today released a guide to portfolio alignment for net zero. If financial institutions are to deploy the capital required to usher in the net-zero transition, they need a way to measure whether their financing activities align to their ambition. This report sets the standard for measuring the alignment of financial portfolios with the 1.5C goal of the Paris Agreement. GFANZ proudly announced its members were already aligning their portfolios with 1.5C; 90 of its founding institutions had already set short-term climate targets, including 29 asset owners committed to reducing portfolio emissions by 25-30% by 2025. In June, GFANZ members were asked to meet a more stringent set of criteria to be accredited and slash emissions 50% by 2030 as part of the Race to Zero initiative. The GFANZ was established ahead of COP26 last year in what was regarded as the global financial sectors biggest collaboration on the net-zero transition. If governments pursued similar policies with other solutions to the building-energy problem we could make rapid progress. Thanks to all 50+ organizations who engaged with James Davis auf LinkedIn: GFANZ-Portfolio-Alignment-Measurement-August2022.pdf The guide then highlights four categories of alignment metrics: climate solutions, aligned strategies, aligning strategies, and companies where there is the option to manage a phase-out of emissions. "To measure portfolio alignment, financial practitioners should consider nine key decisions, the key design judgements," said Anja Ludzuweit, executive director of portfolio alignment measurement for GFANZ. Learn more about the sustainability of the global food market: https://bit.ly/3F8mr0T, Heat pumps are an essential technology to reduce the emissions created by buildings. This requires forward looking, robust, decision useful and comparable metrics. Last month it was revealed that GFANZ had cut its ties with the UN-backed Race to Zero campaign and changed its minimum requirements for participation. GFANZ members have developed voluntary guidance to support all financial institutions in their net-zero transition planning. We enhanced forward-looking sustainability analytics and reporting capabilities through a strategic partnership with Clarity AI. Martin said: Its clearer than ever that voluntary initiatives alone arent enough to drive the urgent action needed to secure a liveable future. We hope the guidance and case studies will help support practitioners and developers with the use and construction of transparent and decision-useful portfolio alignment metrics that support capital allocation decisions to a net-zero economy, Ludzuweit concluded. The Net Zero Banking Alliance (NZBA) is just one of these groups. This publication reiterates that GFANZ will continue to work with stakeholders to create the right conditions for increased investment in support of global net-zero transition. Read our review of Charged here, the latest in Generations book review series: https://bit.ly/3OgC0X1, Every day we lose more of the biological richness of the world. It identifies four key financing strategies that GFANZ said are essential to the transition; investing in climate solutions, investing in companies that are already aligned with 1.5 degrees, investing in transitioning companies, and managing the phase out of emissions. GFANZ is seeking feedback on the guidance and enhancements to critical inputs for measuring portfolio alignment by 12 September. The Glasgow Financial Alliance for Net Zero (GFANZ) has launched its suite of pre-COP resources, including the 2022 report on Portfolio Alignment Measurement from the GFANZ workstream chaired by . GFANZ Progress Report | PDF | Low Carbon Economy | International Energy Agency GFANZ Progress Report - Free download as PDF File (.pdf), Text File (.txt) or read online for free. #netzero, Al Gore and David Blood op-ed in the WSJ today on how sustainable investing is consistent with fiduciary duty: With huge thanks to the GFANZ and Oliver Wyman team, especially Anja Ludzuweit, CFA, Alex Spencer and Christopher Johnstone. But governments are still being chicken about meat, and have barely begun to experiment with public policies that could drive down consumption. Bloomberg LP announced new Implied Temperature Rise Metrics to help investors determine how companies and portfolios align with climate risk goals, such as the Paris Agreement's objective to limit global warming to 1.5C. 2 min read. The Glasgow Financial Alliance for Net Zero (GFANZ) is consulting the financial industry on the portfolio alignment metrics used to evaluate whether companies are on target to achieve their net-zero transition. In order to assist the transition to net zero, GFANZ has today published a voluntary framework for financial institutions. Here he argues, with Dominic Tighe and Tanguy Sn who are members of the portfolio alignment team, that by establishing standards of best practice, the Portfolio . Anja Ludzuweit heads a European-based climate specialist team that works on climate risk and opportunity analysis. GPs for example are expected to: Include all companies in which they hold 25%+ equity, have a board seat and are in a high impact sector (defined by TPI) in their initial targets. The vast majority of this was non-fire-related loss. GFANZ unveils enhancements to measuring Net-Zero portfolio alignment for financial institutions Now open for public comment, the GFANZ Portfolio Alignment Measurement Report provides additional guidance for financial institutions on implementing and selecting portfolio alignment metrics. alignment approaches. 1. More by Natasha Turner. The draft Glasgow Financial Alliance for Net Zero (GFANZ) Portfolio Alignment Measurement report is out. As the questions above illustrate, these issues are not without theoretical and practical challenges, and investors may reasonably disagree about the best approach. Portfolio alignment metrics (PAMs) are measurement systems that financial firms can use in order to assess the progress of their investments to decarbonise, as well as inform new investment. The report aims to drive adoption of portfolio alignment metrics and meaningful convergence . To measure portfolio alignment, financial practitioners should consider nine key decisions, the key design judgements, said Anja Ludzuweit, executive director of portfolio alignment measurement for GFANZ. The report aims to drive adoption of portfolio alignment metrics and meaningful convergence . Portfolio investments are classified as Buyout and Growth, Secondaries and Fund of Funds. Thanks to all 50+ organizations who engaged with us to get the report to this stage, as well as the technical leadership of Anja Ludzuweit, CFA, and with the support of Edward Mason and David Blood. The report aims to drive adoption of portfolio alignment metrics and meaningful convergence . Language: english. She has been shortlisted for Story of the Year and Investment Journalist of Measuring Portfolio Alignment: Driving Enhancement, Convergence, and Adoption (November 2022) . . The draft Glasgow Financial Alliance for Net Zero (GFANZ) Portfolio Alignment Measurement report is out. #Deforestation has been declining, but to salvage what is left of the biological richness of life on Earth it needs to stop immediately. - Sustainable investing is about investing in businesses that are driving toward a world with low greenhouse-gas emissions that is also prosperous, equitable, healthy and safe The campaignannounced earlier this yearits plans for increasing its minimum participation requirements, raising questions about whether financial sector participants would be able to increase the level of detail and ambition in their climate plans accordingly. Natasha is global deputy editor at ESG Clarity, part of the Bonhill Group, and has been a financial journalist for six years. This means GFANZ firms' net-zero commitments must use science-based guidelines to reach net-zero emissions by 2050, cover all emission scopes, include 2030 interim target settings and commit to transparent reporting and accounting in line with Race to Zero criteria. The draft Glasgow Financial Alliance for Net Zero (GFANZ) Portfolio Alignment Measurement report is out. Carbon Tracker Expectations of GFANZ. As such, it has proposed new guidance on measuring the alignment of financial institutions investment, lending, and underwriting activities with net-zero commitments. These nine decisions are grouped in three steps: building a benchmark, comparing company-level alignment against this benchmark and then aggregating this. Bringing together the financial sector to accelerate the transition to a net-zero economy. #ClimateFinance has a gender lens. The Groups purpose is to set and oversee the strategic direction of GFANZ. On a global scale heat pumps sales are going up, but are far below where the International Energy Agency calculates they need to be in line with a 1.5 pathway. Oliver Wyman provided knowledge and advisory support. We've expanded access to sustainability-related metrics in core Aladdin tools from ~1,200 in 2020 to more than 8,000 in 20212. from GFANZ a global coalition of financial institutions promoting decarbonisation aims to address existing gaps in portfolio alignment metrics. 21 managers have joined the initiative since the previous target disclosures update in May 2022, bringing the total number of signatories to 291, representing more than USD 66 trillion in AUM. This webinar will discuss the August GFANZ Portfolio Alignment report, which provides a practitioner perspective for measuring the alignment of investment, lending, and underwriting activities with the goals of the Paris Agreement and critical 2050 global net-zero objectives. While launching the new voluntary framework, GFANZ also called on G20 nations to close a financing gap between current climate pledges and actual recorded levels of decarbonisation, with a focus on raising capital for emerging and developing economies. The resulting scale-up in demand dramatically increased production and led to the drastic reduction in price we benefit from today. (14 October 2020). Followed by Q&A and discussions. 11 August 2022 Press Release GFANZs Portfolio Alignment Measurement Report. It also assists with work to push for net-zero-aligned policymaking in the 55 nations and states where the Alliance operates and to facilitate targeted collaboration. Edward Mason serves as the Director of Engagement at Generation Investment Management. While governments are being chicken about meat, Generation's Sustainability Trends Report 2022 evidences rapidly increasing investor interest in alternative protein. Following the public comment period, GFANZ will release a final report prior to COP27 in Egypt. 4 Our planet's average temperature is already 1.1 degrees C warmer than pre-industrial levels, with the last five The Glasgow Financial Alliance for Net Zero (GFANZ) has launched its suite of pre-COP resources, including the 2022 report on Portfolio Alignment Measurement from the GFANZ workstream chaired by Generation. Wie hat sich unsere Natural Capital"-Strategie inmitten der Paradigmenwechsel im Finanzwesen und in der Wirtschaft, die sich seit Lancierung der Strategie vor zwei Jahren vollzogen haben, bewhrt, und welche naturvertrglichen" politischen Massnahmen haben das Thema gestrkt? Insights blog https://lnkd.in/eMyCbMhu to measure alignment, and we hope the next phase of the work will focus on connecting alignment methodologies to real world emission reductions. In a statement announcing the withdrawal, Vanguard . That accountability extends to governments and international financial institutions whobased on the real-world experience of GFANZ membersmust now deepen their efforts to address climate change. Charged: A History of Batteries and Lessons for a Clean Energy Future by James Morton Turner, positions itself as a history of batteries. The UN climate body, UNFCCC, has seen its chief Simon Steill added to its Principals Group. Yet they have a crucial role to play in moving us towards a net-zero world, whether by powering electric cars or backing up renewable energy sources. Investors can use Implied Temperature Rise to set decarbonization targets and support engagement on climate risk. Financial institutions have a vital role to play in powering our transition to a low-carbon world, and we urge the sub-alliances and members to live up to their responsibilities to support the phasing out of fossil fuels in line with a 1.5C-aligned pathway, she said. It is that, but in addition, it makes some hard-hitting points about sustainability politics. The report proposes and seeks guidance on portfolio alignment use cases as well as enhanced guidance for designing and implementing portfolio alignment metrics. The finance is there if the world truly wants to meet its climate goals. Roadmap roundtable: We know what the problems are, so what are the solutions? Implied Temperature Rise from MSCI ESG Research is an intuitive, forward-looking metric, expressed in degrees Celsius, designed to show the temperature alignment of companies, portfolios and funds with global temperature goals. Global coalition highlights the importance of credible, forward-looking metrics for measuring impact. We call on GFANZ to raise its level of ambition through the following actions: GFANZ members have developed voluntary guidance to support all financial institutions in their net-zero transition planning. "Portfolio alignment metrics are a really significant tool for investors as they pursue their net-zero goals." It started in April 2021, at the same time as GFANZ, with 43 founding members. GFANZ is publishing today Measuring Portfolio Alignment: Driving Enhancement, Convergence, and Adoption, which builds on a multi-year work program and recent public consultation. "It's a hugely exciting moment that this work is now being carried on within GFANZ," said Edward Mason, director of engagement at Generation Investment Management and staff lead for the portfolio alignment workstream in GFANZ. Speaking at the launch of todays suite of GFANZ reports, Mary Shapiro, vice-chair of GFANZ, addressed concerns by saying the Alliances mission remains the same. Ahead of COP27, Glasgow Financial Alliance for Net Zero (GFANZ) has issued a report on Measuring Portfolio Alignment for financial institutions, providing a clear framework to help FIs navigate net zero portfolio methodologies. With todays transition planning framework, we can accelerate the speed and scope with which these enormous financial resources are put to work to achieve the worlds goals.. And we are strengthening our Aladdin Climate offering through the acquisition of . Read more in our call to action: https://lnkd.in/eF4M-NYd #GenderSmartCOP27 | @gendersmartIS | @avivaplc, With #COP27 underway in Egypt, check out our annual Sustainability Trends Report. - This is the only way the planet, its people and their investments can thrive GFANZ issued a report to provide guidance, clear definitions and case studies for financial institutions looking to develop and use portfolio alignment metrics to start decarbonizing their portfolios. There are 10 components in the framework, organised into five themes shown below: Joy Williams, executive director of financial institution transition plans at GFANZ, said the framework is focused on real-economy emissions reductions and is designed for the practitioners within organisations. This week, the Alliance has released a pan-sector framework for Financial Institution Net-Zero Transition Planning, and guidance on measuring portfolio alignment. With #COP27 and #COP15 set to direct trillions of dollars towards global challenges, were calling for urgent action at COP27 to ensure Thanks to all 50+ organizations who engaged with us to get the report to this stage, as well as the technical leadership of Anja Ludzuweit, CFA, and with the support of Edward Mason and David Blood. *GFANZ recently highlighted the decarbonization approach (which is central to the S&P Net Zero Carbon Budget Indices methodology) in its publication "Measuring Portfolio Alignment" (see page 10). Discover more on the emissions challenge for buildings: https://bit.ly/3ErfcPY, Batteries dont tend to capture the publics attention in the same way as oil. Concerns were raisedby organisations including ShareAction, Global Witness, Sierra Club and 350.org over the continued support for fossil fuels of many major players in the finance sector, out of alignment with the new Race to Zero requirements. The Glasgow Financial Alliance for Net Zero (GFANZ) - a practitioner-led, global coalition of financial institutions working to accelerate the world's transition to net-zero greenhouse gas. Its work is being taken up by the Glasgow Financial Alliance for Net-Zero (GFANZ), a Carney-led coalition, "as the natural place to take guidance on portfolio alignment metrics to the next level - where the financial sector meets to define industry standards". #esg #sustainability #investment #netzero, Women and girls are both disproportionately impacted by #ClimateChange and integral to a just transition. 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