Net Zero Financial Service Providers Alliance ceases activities as standalone initiative
The NZFSPA announced a decision to ‘reorganise’. In a statement, UNPRI said members will continue their target setting activities independently
The Net Zero Financial Service Providers Alliance (NZFSPA) has announced a decision to reorganise with providers now pursuing activities independently. The alliance, which operated under the aegis of GFANZ, had a membership comprising of ratings agencies, data and index providers, proxy advisors, auditors and exchanges.
In a statement, the UNPRI — which which supports and advises the alliance — said members will continue their target setting activities independently, outside of the alliance.
“Stock exchanges, research & data providers, index providers and auditors pursuing their activities independently of the initiative, including through integrating them into other existing forums and working groups”, the statement reads.
Members, which rank from Exchanges over research- and and index providers had previously signed an eight-point commitment statement in support of reducing GHG emissions to net zero by 2050 target consistent with a 1.5°C pathway.
The statement includes commitments to develop internal capacities to mitigate climate risks, develop target setting methodologies and annually report progress aligned with TCFD recommendations. Members were also expected to set science-based interim targets within a year of joining the alliance.
Like other net zero alliances, NZFSPA has faced prominent exits, most notably the departures of S&P Global and Moody's, though in comparison with the challenges facing the Net Zero Banking and Insurance alliances, there have been relatively fewer departures.
The decision by the NZFSPA to cease its activities as a standalone initiative comes after its functional groups published their target-setting frameworks. This includes frameworks for research, index and data providers. According to the PRI, the decision to ‘reorganise’ was taken to support next steps for these providers including peer learning and engagement.
“As participants focus on individually implementing firm-level objectives, this next step will support peer-learning and cross-sector engagement that can adapt as investor needs and market priorities continue to evolve”, the statement said.
Net zero exchanges
The group for exchanges will continue with the support of the UN Sustainable Stock Exchange Initiative (SSE). The group – now referred to as the ‘Net Zero Exchange Group – SSE Climate Leaders’ – has tripled in membership since its inception.
“Due to its continued growth and regular reporting, the group has matured to the point where it will benefit from a more exchange-focused structure and activities”, PRI’s statement explains.
NZFSPA’s reorganisation, according to UN PRI, reflects ‘on-going commitment’ of its membership. It is now the latest net zero alliance to cease or reorganise its activities following similar developments at the Net Zero Insurance Alliance in 2024 and Net Zero Asset Managers Initiative in 2025.
NZAM members that opted to stay within the alliance are in the process of reviewing an updated commitment statement – which notably scraps a 2050 target. The deadline for members to review and update their association with the alliance is tomorrow.
