From Rhetoric to Reality: Investigating Financial Institutions' Net Zero

A report by the NewClimate Institute evaluating the integrity of net-zero portfolio commitments among the world's largest financial institutions, concluding that most current commitments are unlikely to achieve real-world global emissions reductions by mid-century.

• As of July 2023, a significant majority of the world's largest financial institutions have committed to net zero portfolio targets, including 37 of the 50 largest asset managers, 24 of the 50 largest asset owners, and 33 of the 50 largest banks.
• The majority of analyzed net zero portfolio commitments are unlikely to result in net zero real-world global emissions by mid-century and generally do not indicate a shift toward serious climate action within the financial institutions.
• Intensity-based sectoral targets are viewed as ineffective for driving a low-carbon transition, serving primarily to reduce portfolio risk. Absolute targets may similarly fail if portfolio composition changes without comprehensive re-baselining.
• Short-term investor focus acts as a barrier to collective action, making it questionable whether long-term net zero portfolio targets meaningfully contribute to international climate goals.

APA

NewClimate Institute (2023). From Rhetoric to Reality: Investigating Financial Institutions' Net Zero. http://www.newclimate.org/resources/publications/from-rhetoric-to-reality-investigating-financial-institutions-net-zero

Chicago

NewClimate Institute. From Rhetoric to Reality: Investigating Financial Institutions' Net Zero. 2023. http://www.newclimate.org/resources/publications/from-rhetoric-to-reality-investigating-financial-institutions-net-zero.

Wikipedia

{{cite report |author=NewClimate Institute |title=From Rhetoric to Reality: Investigating Financial Institutions' Net Zero |date=18 September 2023 |url=http://www.newclimate.org/resources/publications/from-rhetoric-to-reality-investigating-financial-institutions-net-zero |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2023from, author = {{NewClimate Institute}}, title = {{From Rhetoric to Reality: Investigating Financial Institutions' Net Zero}}, institution = {NewClimate Institute}, year = {2023}, month = sep, url = {http://www.newclimate.org/resources/publications/from-rhetoric-to-reality-investigating-financial-institutions-net-zero}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }