Do voluntary climate alliances
support real economy
impacts?
OECD Workshop
February 22, 2023

2
Framework for Sustainable Finance Integrity

3
Voluntary Alliance Comparison
- No commitment - Partially aligned with neccesary action -Progress towards neccesary action/in line with current leading practice -Aligned with neccesary action
This table indicates the presence of commitments in
each category but does not evaluate progress made
by institutions towards meeting such commitments.
Government
Central Banks and
Supervisors
Development Finance Institutions Commercial Banks Asset Owners Asset Managers Insurers
Coalition of
Finance
Ministers for
Climate Action
(Helsinki
Principles)
Network for
Greening the
Financial System
Joint Declaration
of all PDBs in the
World
International
Development
Finance Club
MDB 6 Building
Block Approach
Net Zero Banking
Alliance
Net Zero Asset
Owner Alliance
Net Zero Asset
Managers
Initiative
Net Zero
Insurance
Alliance
Targets and
Objectives
Setting Paris-aligned,
net zero targets
1 1 1 1 1 2 3 2 2
Setting complementary
SDG targets
0 0 3 1 0 1 1 0 1
Credible offsets 0 0 0 0 0 2 2 2 2
Implementation
Whole institution
approach
3 2 1 2 2 0 1 0 2
Counterparty
engagement
2 1 1 2 2 1 3 3 2
Developing and
deploying sustainable
finance
2 1 2 2 2 2 3 1 1
Climate policy
alignment &
engagement
1 1 2 2 2 2 3 2 2
Fossil fuel financing 1 1 1 1 0 0 2 0 0
Metrics and
Transparency
Transparently disclosing
climate risks
1 2 1 1 1 2 2 2 2
Tracking emissions &
sustainability
investments
1 2 1 0 1 2 2 0 0

4
Gap 1: Balancing membership composition
Actor Type Financial Institutions
Committed to Net Zero
Estimated % of Industry
Assets Committed to
Net Zero
Total 547 32%
Asset manager 266 42%
Commercial bank 128 39%
Asset owner 74 6.7%
Insurer 54 16%

5
• Global private finance assets
are estimated to be USD 407
trillion
• 32% of global financial assets
are managed by financial
institutions that have made net
zero commitments
• Of that 32%, the total value of
assets currently covered by an
interim target or on a net-zero
trajectory is unknown
547 private financial
institutions
managing $129
trillion in assets
are committed to
net zero
Gap 2: Assets included in interim targets

6
Gap 3: Geographic distribution of alliance members

7
Gap 4: Public sector announcements lack implementation details

8
• Membership in an alliance is not a guarantee for effective climate action as each financial institution
alliance and initiative has a different set of requirements and there are no enforcement mechanisms.
• Interim targets are incredibly important, but lack standardization and often do not cover all assets
under management or balance sheet assets. Net zero or Paris-alignment commitments should not be
seen as the end of the discussion.
• There are barriers to measuring voluntary alliance credibility that will require time and international
engagement to address. On the private sector side, this will include efforts to share data more widely
and provide capacity support to EMDEs. On the public sector side, this requires transparency and
specificity, both of which are lacking in the public sector’s discussion of cliamte finance goals.
Key Findings on Credibility

9
Climate Finance 2011-2020

Contact –
CPI: climatepolicyinitiative.org
The Lab: climatefinancelab.org
Global Landscape of Climate Finance:
climatefinancelandscape.org
Thank You
@climatepolicy
@climatepolicyinitiative
USICEF: usicef.org