Net Zero Finance Tracker

How are private finance institutions progressing on their Paris Agreement and Net Zero goals?

We compiled 562 institutions’ progress on Targets, their Implementation, and Impact by capturing and harmonising existing data efforts.

The Net Zero Finance Tracker (NZFT) provides a comprehensive assessment of how public and private finance institutions are progressing on Paris Agreement goals and delivering net zero impact on the ground

Diagram of our methodology, tracking Net Zero progress from Targets, Implementation, to Impact

The NZFT captures, standardizes, and assesses action across multiple data sources—including CDP, PRI, InfluenceMap and many others— offering the most comprehensive coverage of large financial institutions.

List of data providers

TARGETS. Despite significant progress in recent years, most GFANZ financial institutions are just starting to adopt broad net zero mitigation targets. Further, critical, more operational targets related to investment in climate solutions and divestment from fossil fuels are far less common.

TARGETS. Despite significant progress in recent years, most GFANZ financial institutions are just starting to adopt broad net zero mitigation targets. Further, critical,  more operational targets related to investment in climate solutions and divestment from fossil fuels are far less common.

IMPLEMENTATION. Progress has also been observed – albeit more slowly – in the adoption of measures to reach the targets set. Most GFANZ institutions (57%) have reached the Initial Response stage of Implementation, with most progress seen on Climate Risk Management, Strategy and Disclosure as well as the adoption of Internal Accountability Frameworks. While almost all GFANZ financial institutions have committed to climate stewardship, less than 20% have engaged in activities that encourage a net zero transition, without also taking actions that oppose it.

IMPLEMENTATION. Progress has also been observed – albeit more slowly – in the adoption of measures to reach the targets set. Most GFANZ institutions (57%) have reached the Initial Response stage of Implementation, with most progress seen on Climate Risk Management, Strategy and Disclosure as well as the adoption of Internal Accountability Frameworks. While almost all GFANZ financial institutions have committed to climate stewardship, less than 20% have engaged in activities that encourage a net zero transition, without also taking actions that oppose it.

IMPACT. While green lending activities from GFANZ institutions observed an average annual increase of 30% between 2020 and 2022, exposure to fossil fuels remains significant. Similarly, at the project level, although investment in clean energy now outstrips that in fossil fuels, progress is faltering and falls far short of what is needed to achieve 2030 Paris Agreement goals.

IMPACT. While green lending activities from GFANZ institutions observed an average annual increase of 30% between 2020 and 2022, exposure to fossil fuels remains significant. Similarly, at the project level, although investment in clean energy now outstrips that in fossil fuels, progress is faltering and falls far short of what is needed to achieve 2030 Paris Agreement goals.

Intuitively, financial institutions with strong targets in our dataset also did better on implementation.

Intuitively, financial institutions with strong targets in our dataset also did better on implementation.

While targets drive implementation, they do not always immediately drive net zero investment in the real economy, as it takes time to convert goals and action into results.

While targets drive implementation, they do not always  immediately drive net zero investment in the real economy, as it takes time to convert goals and action into results.

Coordination between data providers is critical to ensure efforts focused on closing information gaps. Further, we need metrics that can improve accountability of the financial system on the real economy, by tracking financial institutions' indirect contributions as shareholders and corporate lenders.

Coordination between data providers is critical to ensure efforts focused on closing information gaps. Further, we need metrics that can improve accountability of the financial system on the real economy, by tracking financial institutions' indirect contributions as shareholders and corporate lenders.

How can I use the NZFT to learn more?

Literature

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Acknowledgments

As an aggregator, this work would have not been possible without the support of our funder, the Hewlett Foundation, and the data initiatives from which the NZFT collects and standardizes data. Below are reported key providers. We invite you to explore their websites for more granular information regarding actions tracked in this dashboard.