Scientists sound alarm bells: Net Zero Asset Owners Alliance is ‘falling short’
A new report 'critically examines how the NZAOA is honouring its commitments'
Most members of the Net Zero Asset Owners Alliance are "falling short" of what is expected of them, according to a new report that severely criticises the investor initiative aimed at accelerating progress on climate.
In fact, researchers from the University of Edinburgh found that seven prominent members of the Alliance own more fossil fuel company bonds than Vanguard, the US-based investment giant.
Some of the NZAOA's most important members include include AMF, Alecta, Allianz, Caisse de depot et placement du Quebec (CDPQ), Nordea Life & Pension, Storebrand, the Church of England Commissioners, Danica Pension as well as Folksam Group.
Researcher Lauren Chin (above) said that “members of the Net Zero Asset Owners Alliance are falling short of what is expected of them, as guided by the best and latest science of climate change."
Chin explained that the report "critically examines how the NZAOA is honouring its commitments."
“With the important changes of voting in favour of Paris-aligned proposals, denying fossil fuel debt and disclosure of Scope 3 emissions, these influential organisations could wield their power to better align their sizable asset class with strong, immediate emissions reductions,” she noted.
Chin and her team found that less than a third of all NZAOA members disclose bond engagement, divestment, or denial strategies across fossil fuels.
"These actions enable new fossil fuel infrastructure, which is not aligned with a 1.5°C pathway for climate action," Lin pointed out.
Recommendations made in the report include changes to proxy voting practices, namely to align members with net zero commitments, an immediate denial of new bonds for fossil fuel companies as well as new disclosure requirements.