Reclaim Finance response to consultation on Net-Zero Asset Owner Alliance Target Setting Protocol Version 4

Reclaim Finance criticizes the Net-Zero Asset Owner Alliance (AOA) for failing to align its Target Setting Protocol Version 4 (TSPV4) with UN High-Level Expert Group (HLEG) recommendations. The organization argues that the AOA allows members to use relative intensity metrics that can disguise absolute emission increases and fails to mandate Scope 3 targets for high-emitting sectors like oil and gas. Reclaim Finance calls for mandatory absolute targets, robust transition plans for asset owners, and a strict prohibition on investing in companies expanding coal, oil, and gas infrastructure. Additionally, it urges the AOA to define concrete escalation procedures for investor engagement and to adopt the updated September 2023 IEA Net Zero Roadmap.

• The AOA's current target-setting framework allows members to use relative intensity metrics, which Reclaim Finance argues can hide a lack of real-world reductions; as of September 2023, only 10 out of 72 asset owners with 2030 targets had explicitly set absolute targets.
• The AOA does not require members to set targets for the Scope 3 emissions of their investees, even for the oil and gas sector where such emissions are considered especially material.
• There is a significant gap between the AOA's stated positions on thermal coal and the actual policies of its members; only eight out of 53 members in the Coal Policy Tool have robust policies excluding financing for new coal mines and power plants.
• Reclaim Finance asserts that the AOA's recommendations to stop financing oil and gas expansion are largely ineffective because they only apply to a small minority of members who set specific sectoral or infrastructure targets.
• The AOA's engagement targets for asset managers lack concrete implementation steps; Reclaim Finance recommends incorporating systematic sanctions and using the Climate Action 100+ Net-Zero Company Benchmark to inform escalation strategies.
• Reclaim Finance argues that TSPV4 must mandate that members stop investing in companies developing new oil and gas projects, aligning with the scientific reality that the carbon budget cannot accommodate them.

APA

Reclaim Finance (2023). Reclaim Finance response to consultation on Net-Zero Asset Owner Alliance Target Setting Protocol Version 4. https://reclaimfinance.org/site/wp-content/uploads/2023/10/RF-Comments-on-NZAOA-TSP4-consultation-Sept-2023.pdf

Chicago

Reclaim Finance. Reclaim Finance response to consultation on Net-Zero Asset Owner Alliance Target Setting Protocol Version 4. 2023. https://reclaimfinance.org/site/wp-content/uploads/2023/10/RF-Comments-on-NZAOA-TSP4-consultation-Sept-2023.pdf.

Wikipedia

{{cite press release |author=Reclaim Finance |title=Reclaim Finance response to consultation on Net-Zero Asset Owner Alliance Target Setting Protocol Version 4 |date=28 August 2023 |url=https://reclaimfinance.org/site/wp-content/uploads/2023/10/RF-Comments-on-NZAOA-TSP4-consultation-Sept-2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{reclaimfinance2023reclaim, author = {{Reclaim Finance}}, title = {{Reclaim Finance response to consultation on Net-Zero Asset Owner Alliance Target Setting Protocol Version 4}}, publisher = {Reclaim Finance}, year = {2023}, month = aug, url = {https://reclaimfinance.org/site/wp-content/uploads/2023/10/RF-Comments-on-NZAOA-TSP4-consultation-Sept-2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }