Improving Portfolio Alignment and Financed Emissions Metrics
September 15, 2022 | Updated at September 15, 2022
The lack of transparency around financial institutions’ Net Zero targets and disclosures for portfolio alignment leaves a big opportunity for greenwashing. This could be addressed with better guidance on portfolio alignment metrics, as contained in a recent Glasgow Financial Alliance for Net Zero (GFANZ) report.
Financial institutions are being given substantial leeway on how to define their alignment with national Net Zero emissions targetsThis presents a loophole that could enable greenwashing unless more clarity is required on what makes for a credible Net Zero target or disclosurePortfolio alignment metrics, the subject of a report from GFANZ, are particularly challenging because different metrics are better suited to different circumstances, they...