Communication
New Climate Institute Blog
Net zero or zero sense: three reasons to rethink financial institution's voluntary targets
Why do financial institutions continue to back fossil fuel expansion, which is clearly not in line with the Paris Agreement nor with many financial institutions’ own net-zero targets?
This blog reveals three critical limitations in the voluntary approach of financial institutions’ net-zero targets: the low integrity of existing targets, their limited ability to directly control investee emissions, and a finance-first mandate that hinders voluntary climate action. The authors call for a reassessment of strategies that can effectively drive investments towards real-world decarbonisation.