Private Financial Institutions’ Paris Alignment Commitments: 2022 Update

The report finds that while net zero commitments from private financial institutions have grown substantially, representing 32% of global private financial assets, there are significant gaps in the credibility and coverage of interim targets. Most commitments originate from OECD countries, and there is a notable lack of detailed climate data and commitments in developing economies, particularly in Asia. The analysis highlights that only a small fraction of institutions have externally verified plans, and many interim targets cover only a portion of their total assets under management.

• As of May 13, 2022, at least 547 financial institutions have announced net zero targets, representing USD 129 trillion in assets under management and advice, which constitutes 32% of global private financial assets.
• Net zero commitments are heavily concentrated in developed economies; 88% of the 76 pledges made between January and May 13, 2022, came from OECD countries.
• There is a significant gap in net zero commitments in Asia (excluding Japan and Australia), where institutions committed to net zero represent only USD 610 billion of the region's USD 14 trillion in assets under management as of 2020.
• The credibility of net zero commitments is challenged by a lack of comprehensive interim targets; for example, asset managers who have set interim targets only commit 39% of their assets under management to be managed in line with net zero by 2050 or sooner.
• Commercial banks face a gap in target coverage because they are only required to set interim targets for high-emitting sectors and on-balance sheet investments, omitting the majority of fossil fuel financing which occurs through bond and equity underwriting.
• Asset managers have seen the largest increase in the number of committed institutions in 2022, with up to 42% of these managers having less than USD 1 billion in assets or not publicly reporting their assets under management.
• While most fossil fuel exclusions previously focused on coal, there is a trend toward non-coal announcements, such as Dai-Ichi Life Group's pledge to stop financing new oil and gas power generation.

APA

Solomon, M. (2022). Private Financial Institutions’ Paris Alignment Commitments: 2022 Update. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/Private-Financial-Institutions-Paris-Alignment-Commitments-l-2022-Update.pdf

Chicago

Solomon, Matthew. Private Financial Institutions’ Paris Alignment Commitments: 2022 Update. Climate Policy Initiative, 2022. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/Private-Financial-Institutions-Paris-Alignment-Commitments-l-2022-Update.pdf.

Wikipedia

{{cite report |last1=Solomon |first1=Matthew |title=Private Financial Institutions’ Paris Alignment Commitments: 2022 Update |publisher=Climate Policy Initiative |date=June 2022 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/Private-Financial-Institutions-Paris-Alignment-Commitments-l-2022-Update.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{solomon2022private, author = {Solomon, Matthew}, title = {{Private Financial Institutions’ Paris Alignment Commitments: 2022 Update}}, institution = {Climate Policy Initiative}, year = {2022}, month = jun, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/Private-Financial-Institutions-Paris-Alignment-Commitments-l-2022-Update.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }