Net-zero Asset Owner Alliance 2025 targets to be improved

Reclaim Finance argues that the Net-zero Asset Owner Alliance's (NZAOA) target setting protocol contains loopholes regarding divestment strategies, the use of unrealistic climate scenarios, the lack of mandatory absolute reduction targets, and the absence of measures against anti-climate lobbying.

• The NZAOA's approach to engagement lacks a clear escalation strategy that leads to divestment. Reclaim Finance argues that members should adopt an "engagement before divestment" strategy with time-bound demands and public escalation, noting that divestment has already helped increase the cost of capital for oil and gas companies and driven the move away from coal.
• The NZAOA allows the use of 'Pathway 4' IPCC scenarios, which include high overshoot scenarios that may exceed the 1.5°C target and allow for less ambitious CO2 reduction targets of -16% for 2020-2025. Additionally, the protocol permits reliance on unproven negative emissions technologies like CDR and BECCS, whereas Reclaim Finance suggests targets should be based on low/no overshoot scenarios (pathways 1 to 3) with a minimum CO2 reduction of 24% from 2020 to 2025.
• The NZAOA does not mandate absolute reduction targets for its members, which Reclaim Finance argues is necessary because intensity targets can allow carbon-intensive companies, such as fossil fuel majors, to increase absolute emissions while reducing intensity.
• The NZAOA protocol fails to address anti-climate lobbying by investee companies or interest groups. Reclaim Finance proposes that members should pledge to divest from companies or exit lobby groups that engage in climate-destructive lobbying after a one-year engagement period.

APA

admin (2020). Net-zero Asset Owner Alliance 2025 targets to be improved. Reclaim Finance. https://reclaimfinance.org/site/en/2020/11/10/net-zero-asset-owner-alliance-2025-targets-to-be-improved/

Chicago

admin. Net-zero Asset Owner Alliance 2025 targets to be improved. Reclaim Finance, 2020. https://reclaimfinance.org/site/en/2020/11/10/net-zero-asset-owner-alliance-2025-targets-to-be-improved/.

Wikipedia

{{cite press release |last1=admin |title=Net-zero Asset Owner Alliance 2025 targets to be improved |publisher=Reclaim Finance |date=10 November 2020 |url=https://reclaimfinance.org/site/en/2020/11/10/net-zero-asset-owner-alliance-2025-targets-to-be-improved/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{admin2020netzero, author = {admin}, title = {{Net-zero Asset Owner Alliance 2025 targets to be improved}}, publisher = {Reclaim Finance}, year = {2020}, month = nov, url = {https://reclaimfinance.org/site/en/2020/11/10/net-zero-asset-owner-alliance-2025-targets-to-be-improved/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }