WWF responds to COP26 Finance day announcements - Finance totalling more than US$130 trillion of capital is at the scale needed to deliver the transition.
Posted on November, 03 2021
Margaret Kuhlow, WWF Global Lead Finance, said: “There have been some impressive announcements from the finance sector today, not least from the Glasgow Financial Alliance for Net Zero (GFANZ) whose massive $130+ trillion in assets under management can help deliver the estimated $100 trillion of finance needed to transition to a net-zero emissions global economy over the next three decades.
“GFANZ members must deliver against the Race to Zero commitment, including aligning to the science-based target of 1.5°C, with clear and transparent short-term targets to 2030, and engage both investee companies and policymakers. We encourage all investors that are not already part of GFANZ to commit to decarbonize - there is no reason to not to join the Race to Zero. It’s time to be part of the solution, not the problem.
“But while financial institutions have a vital role to play - including accounting for climate-related financial risks, aligning portfolios with the Paris Agreement, and investing in decarbonization and nature-based solutions - it is governments that must restructure the global financial system and accelerate an equitable transition to net-zero emissions.
“An encouraging note today is the UK government announcement to become the world’s first net zero aligned financial centre. This would mean mandating all financial institutions and publicly listed companies to publish transition plans by 2023. A task force will be set up to define gold standards for transition plans by end 2022. Let’s hope other countries will follow.
"In addition, the new commitment from nine multilateral development banks to mainstream nature opens a new chapter for bridging the finance gap for biodiversity, which currently stands at $700 billion. Reversing nature loss is essential to solving the climate crisis and, with government funding globally for harmful activities still five times greater than nature-positive investments, we call on other Public Development Banks to follow this leader to both green their finance and finance green.
“Finally, the International Financial Reporting Standards (IFRS) Foundation announced today the formation of a new International Sustainability Standards Board (ISSB) to develop a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs. The Climate Disclosure Standards Board and the Value reporting Foundation will be consolidated into the IFRS Foundation by June 2022. This represents an important milestone in the promotion of corporate sustainability disclosures globally. While ISSB will look first at climate-related disclosures, it must rapidly expand its remit to embrace nature-related matters.”
Contact: News@wwfint.org
“GFANZ members must deliver against the Race to Zero commitment, including aligning to the science-based target of 1.5°C, with clear and transparent short-term targets to 2030, and engage both investee companies and policymakers. We encourage all investors that are not already part of GFANZ to commit to decarbonize - there is no reason to not to join the Race to Zero. It’s time to be part of the solution, not the problem.
“But while financial institutions have a vital role to play - including accounting for climate-related financial risks, aligning portfolios with the Paris Agreement, and investing in decarbonization and nature-based solutions - it is governments that must restructure the global financial system and accelerate an equitable transition to net-zero emissions.
“An encouraging note today is the UK government announcement to become the world’s first net zero aligned financial centre. This would mean mandating all financial institutions and publicly listed companies to publish transition plans by 2023. A task force will be set up to define gold standards for transition plans by end 2022. Let’s hope other countries will follow.
"In addition, the new commitment from nine multilateral development banks to mainstream nature opens a new chapter for bridging the finance gap for biodiversity, which currently stands at $700 billion. Reversing nature loss is essential to solving the climate crisis and, with government funding globally for harmful activities still five times greater than nature-positive investments, we call on other Public Development Banks to follow this leader to both green their finance and finance green.
“Finally, the International Financial Reporting Standards (IFRS) Foundation announced today the formation of a new International Sustainability Standards Board (ISSB) to develop a comprehensive global baseline of high-quality sustainability disclosure standards to meet investors’ information needs. The Climate Disclosure Standards Board and the Value reporting Foundation will be consolidated into the IFRS Foundation by June 2022. This represents an important milestone in the promotion of corporate sustainability disclosures globally. While ISSB will look first at climate-related disclosures, it must rapidly expand its remit to embrace nature-related matters.”
Contact: News@wwfint.org