United Nations Environment Programme Finance Initiative’s Net-Zero Asset Owner Alliance reports 88 percent of 2020–2025 targets achieved

The Net-Zero Asset Owner Alliance (NZAOA), co-convened by the United Nations Environment Programme Finance Initiative, published its 2026 Progress Report showing that signatories fully achieved 88 percent of their targets for 2020–2025. Members enter their second target period with lower portfolio carbon intensity and increased investment in climate solutions. More than 95 percent of signatories have set targets in at least three of the alliance’s four core target categories. Carbon intensity fell from 61 to 50 tonnes of carbon dioxide equivalent per USD 1 million invested in listed equities, and from 73 to 50 tonnes for corporate bonds. Climate solutions investments reached USD 787 billion in 2025, up from USD 555 billion two years earlier, representing roughly 8 percent of total assets under management. Engagements delegated through asset managers reached 103 percent of aggregate target levels. The fifth edition of the Target-Setting Protocol, released in March 2026, introduced transition targets focused on companies with credible transition plans in sectors where emissions are difficult to reduce. Its expectations cover governance and risk management, capital allocation and implementation, alongside policy advocacy aligned with the Paris Agreement and transparent reporting. Work is also underway to improve climate data quality, engagement with managers and targets tailored to specific assets in private markets.