NEW YORK–(BUSINESS WIRE)–#KBRA–KBRA releases research that examines the criticisms surrounding the Glasgow Financial Alliance for Net Zero (GFANZ). The report discusses the GFANZ and Race to Zero partnership, greenwashing, and antitrust concerns, notable membership departures, and the path forward for climate alliances.
In 2015, the United Nations Climate Change Conference established the Paris Agreement, an international treaty on climate change aimed toward limiting global temperatures from exceeding 1.5°C above pre-industrial levels. This treaty became the catalyst for many global organizations and industries to come together and align on commitments toward carbon reduction efforts and long-term emissions goals.
One of the largest groups to form is known as the Glasgow Financial Alliance for Net Zero (GFANZ), an international initiative designed to mobilize the finance sector’s commitment toward achieving global net zero emissions by 2050. Though the alliance was formed to foster and facilitate the finance sector’s transition to a low carbon future, the organization has faced criticism from both internal and external parties. Since the end of 2022, the increasing pressure that GFANZ as an organization and aligned members have faced has led to significant departures from the alliance.
Some banks and financial institutions have filed complaints, claiming certain targets that the alliance promised were unrealistic and proposed without consultation. Other organizations have since left, citing insufficient progress toward global objectives, lack of transparency, and accusations of greenwashing. As members continue to withdraw from the alliance, including founding members, the organization’s efficacy has been brought into question. Understanding the challenges and criticism that this alliance continues to face may provide insight on the path forward for GFANZ, as well as other emerging climate coalitions.
Click here to view the report.
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Arianne Schreier, Associate
Pat Welch, Chief ESG and Ratings Policy Officer
Jason Lilien, Managing Director