Via Global Trade Review by Jenny Messenger
The demise of the UN-backed Net Zero Banking Alliance (NZBA) has highlighted how difficult it is to create single standards for the global financial sector, the Bankers Association for Finance and Trade (Baft) has said.
The NZBA officially shut down earlier this month after members voted to end the alliance and instead use its guidance as a framework for setting net-zero targets.
The decision, which comes after a rocky year for the organisation in which several major banks exited, illustrates the challenges of aligning multiple banks across the globe, says Baft.
“What the disbanding of NZBA shows is the difficulty of establishing single standards that are flexible enough to accommodate the many bank operating models and regional variances on sustainability goals,” says Andy Price, vice-president, international policy, and sustainability and ESG lead at Baft.