The Net-Zero Asset Owner Alliance (NZAOA) has announced a significant increase in investments aimed at climate solutions, reporting a total of $175 billion allocated in 2023. This marks a 38% rise from the previous year’s $127 billion. The Alliance, which comprises 88 major asset owners managing a collective $9.5 trillion in assets, aims to drive the transition toward net-zero emissions across the investment landscape.

According to the latest progress report from NZAOA, 81 of its 88 members have established intermediate net-zero targets, committing to a 26% reduction in emissions from key assets by 2025. This ambitious goal encompasses about $4.3 trillion of the Alliance’s total assets under management. Despite the increase in climate-focused investments, the report emphasizes the necessity for a “decisive shift in policy” to ensure that government actions align with net-zero objectives, highlighting a slow global transition in the face of rising emissions.

Günther Thallinger, Chair of the NZAOA and Board Member at Allianz SE, noted that while the Alliance is setting a strong example for progress, meaningful government policies and clear transition plans are essential to sustain momentum. He urged the implementation of bold climate policies that define actionable targets across sectors to fulfill commitments outlined in the Paris Agreement.

The report reveals that 6% of the Alliance's total assets, approximately $555 billion, were directed toward climate solutions, which include corporate bonds and real estate investments. The number of members committing to intermediate targets has risen from 69 last year to 81, with 79 members also setting sub-portfolio decarbonization targets.

As COP29 approaches on November 11 in Baku, Azerbaijan, the Alliance's findings underline both the progress achieved and the urgent need for policy adjustments to align with the increasing investment in climate solutions. The NZAOA aims to accelerate the transition towards a sustainable future by mobilizing capital for initiatives that support environmental goals.