$10.6trn alliance pushes companies on data transparency

September 23, 2022

The NZAOA is pushing for real-world companies across 12 sectors to begin disclosing data.

Companies and data providers are being urged to become more transparent by the UN-convened Net-Zero Asset Owners Alliance (NZAOA).

The Alliance, made up of 74 members globally with cumulative assets of $10.6trn, has published a statement accusing current sector-specific disclosures as “insufficient, unreliable, incomparable, or non-existent”.

This makes it difficult for investments to make fully-informed decisions about where they can allocate capital in a way that is aligned with decarbonisation pathways.

The NZAOA is therefore pushing for real-world companies across 12 sectors to begin disclosing data in line with requirements from the Taskforce on Climate-Related Financial Disclosures, the European Financial Reporting Advisory Group, and the International Sustainability Standards Board.

These sectors include oil and gas, utilities, aviation, shipping, heavy duty road transport, light duty road transport, cement, steel, aluminium, agriculture, forestry, and construction and buildings.

These disclosures are being called for as soon as possible, with annual progress reports preferred, and for data providers to support this. Forward-looking guidance, including five and ten year targets, are also being called for.

Read Minerva's previous coverage of the NZAOA:

https://www.old.manifest.co.uk/top-asset-owners-favour-engagement-for-net-zero-carbon-goals/

To mandate this, the Alliance is also pushing for relevant regulatory bodies to enforce such disclosures.

The statement read: “We call on all regulators and policymakers to begin to explore the inclusion of these metrics in relevant policy.

“We call on all global net-zero initiatives (Race to Zero, GFANZ, and beyond) to continue to support this and other calls for transparency and data availability. We welcome others to endorse this call or issue similar requests.”

According to the TCFD’s most recent progress report, published in October 2021, climate-related disclosures are increasing but still require improvement.

Between 2019 and 2020, climate disclosures increased more than in any other year surveyed. However, at that point still only 50% of companies reviewed disclosing in alignment with at least three of the recommended disclosures.

The next TCFD progress report is due to be published in October 2022.