Net Zero Strategies in Financial Services - Thematic Research

Net Zero Strategies in Financial Services - Thematic Research

Summary

This report provides an in-depth analysis into net-zero strategies across the financial sector, including a discussion of why financial services companies need net-zero strategies. The emissions targets and performance of 20 leading companies across banking, payments, and insurance are examined, alongside a comprehensive look into the net-zero strategies of four leading providers. The report also includes a summary of the key sustainable products and services offered by finance majors.

Companies achieve net zero emissions by cutting greenhouse gas (GHG) emissions to as close to zero as possible, with any remaining emissions then “offset.” Firms that achieve net zero emissions may say they are carbon neutral. Companies are under pressure to cut emissions as countries aim to achieve their climate commitments. Financial services companies own very few assets that directly emit greenhouse gases, and most are purchasing renewable electricity contracts to reduce their Scope 2 emissions. They therefore must place more emphasis on reducing their Scope 3 emissions, which are produced by assets they do not directly own. In recent years, financial services companies have face increasing pressure to measure and report the emissions associated with their investments and insurance underwriting activities, known as financed emissions and insurance-associated emissions, respectively.

Scope

• All 20 of the leading financial services companies analyzed in this report have committed to achieving net zero emissions across select areas of their value chains between 2030 and 2060.
• Scope 1 and 2 emissions, which are generated by business operations, make up 29% of currently reported emissions. The main contributors to these emissions are office heating, company-owned vehicles, and purchased electricity and steam.
• Scope 3 emissions, or value chain emissions, account for 71% of emissions but are currently under-reported. The main contributors to upstream Scope 3 are purchased goods and services and business travel.

Reasons to Buy

• Understand which leading financial services companies are reducing their emissions and how they achieve this.
• Identify net-zero leaders and laggards across payments, retail banking, wealth management, life insurance, and non-life insurance.
• Learn about financed and insurance-associated emissions, as well as the key challenges in measuring them.
• Gain an overview of the key climate-related products and services that finance majors offer their clients.