Continuing on the theme of reversing current trends of climate transition and the push for investors to get back into financing coal projects – the Net Zero Asset Owners’ Alliance (NZAOA) is already lagging in meeting its commitments to reduce coal investments. According to Responsible Investor:
“Nearly one-fifth of members of the NZAOA had not met commitments on thermal coal policy by the end of May [2023], according to the initiative’s third progress report. Members of NZAOA are expected to align to its policy on thermal coal and other policy positions within 12 months of either publication or joining the alliance. The report found that, as of May, 3 percent of NZAOA members had no position on thermal coal and a further 15 percent had a position that was not aligned with that of the initiative… membership gains had ‘pretty clearly’ slowed down, driven in part by the global economic situation and increasing politicisation of climate.”
This is yet another indication that company should make plans for contingencies and disruptions in achieving carbon emissions reductions – especially for Scope 2. This in’t going to be a “Point A to Point B” journey – it’s more like going from Miami to Seattle via Iceland, Auckland, and Morocco with a side trip to Europa.
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