The Net Zero Financial Service Providers Alliance (NZFSPA) will cease as a standalone initiative, with the different groups it covers pursuing their own emission reduction activities independently, or integrating into other working groups.
The NZFSPA covered service providers that support institutional and retail investors. This includes stock exchanges, index providers, research & data firms and auditors. NZFSPA is winding down after developing target-setting frameworks across these various different sub-groups. These frameworks will continue to serve as a reference point for service providers developing net-zero aligned product strategies.
In future members of NZFSPA’s research & data and index provider groups will be invited to participate in existing PRI climate workstreams. This is designed to offer opportunities for service providers to engage with asset owners and asset managers outside of client relationships, focusing on improving the quality, consistency and accessibility of climate-related data.
The stock exchange cohort will continue its work through the UN Sustainable Stock Exchange (UN SSE) initiative, operating as the Net Zero Exchange Group – SSE Climate Leaders. The group has tripled in size since the NZFSPA’s launch, with all members now following the target-setting framework and reporting annually on progress.
The NZFSPA said the move reflects the continued commitment of participating service providers to climate action and accountability, and to developing the tools and data needed to help investors manage climate-related risks and opportunities.
NZFSPA is one of the number of net zero frameworks and coalitions that grew out of the UN-backed Principles of Responsible Investment. This also incudes the Net Zero Asset Managers initiatives (NZAM) and the Net Zero Asset Owners Association.
NZAM initiative has more recently restructured follow a number of US managers leaving the organisation.