The Net Zero Banking Alliance, under the umbrella of the Glasgow Financial Alliance for Net Zero (GFANZ) is the only major, international commitment requiring financial institutions to do this. That is why Triodos Bank joined the NZBA in April 2021.
However, it is crucial it is a meaningful commitment for all signatories; they must be held accountable. In this sense, it is disappointing and discouraging that the requirements of the UN’s climate action campaign Race to Zero have been dropped and that some financial institutions that have signed the commitment still finance fossil fuel expansion and exploration. This is not in line with the commitment financial institutions have made and does not bring the 1.5 degrees scenario any closer. Even more so, Triodos Bank has committed itself to net-zero in 2035, because there is no time to waste to reduce carbon emissions.
Together with other values-based banks, all members of the Global Alliance for Banking on Values (GABV), we continue to influence the requirements of the NZBA to make sure all signatories make concrete and meaningful commitments. Triodos Bank is committed to make a final attempt to set stricter guidelines for NZBA members.
We believe this is possible because the target setting guidelines are being revised. This is an important step to ensure that financial institutions that are committed to the NZBA set meaningful targets and live up to their promise to become net-zero. We urge the NZBA to have a tangible improvement of the guidelines by the next COP28, in November. We will reconsider our membership of the NZBA at that time.
The revised guideline should at a minimum include the criteria of Race to Zero to phase down and out all unabated fossil fuels and the restrictions of the development, financing, and facilitation of new fossil fuel assets, which includes no new coal projects. We also support the requirement for transitions plans, the inclusion of facilitated emissions and the new criterion to align lobbying and advocacy activities to be aligned with net zero.