Decarbonizing portfolios has become increasingly important for banks as the world moves towards a low-carbon economy. To achieve this goal, banks are being prompted to take a holistic approach to portfolio decarbonization, considering not only the carbon footprint of their investments but also the entire value chain of their financing activities. This will require significant effort and investment, but it will also create new business opportunities in the low-carbon and sustainable financial markets.
Representing more than 550 global financial institutions that have committed to fully decarbonizing their portfolios by 2050, the Glasgow Financial Alliance for Net Zero (GFANZ) has celebrated its second birthday in April 2023. A lot has changed thanks to GFANZ’s strong presence and awareness creation since its founding in April 2021: attention to banks’ financed emissions and net zero strategy is no longer a nice-to-have, but it is becoming more and more business as usual.
