From commitment to action: UK FPS progress on pathway to net zero

Significant progress has been made in the transition to net zero both in the UK and globally, with financial services firms continuing to ramp up efforts to address climate change. With an increasing share of organisations now having formal climate commitments in place, attention is shifting to implementing these commitments and ensuring they are having the impact we need to finance the transition to net zero.

Climate Policy Initiative (CPI) estimated that at least $6tn will be required globally in annual climate finance through 2050 to limit temperature increase to well below 2C, and avoid the worst impacts of climate change. In light of this, it is clear that public sector finance alone will not be sufficient to fill the funding gap we face. Private capital can and must play a critical role if we are to achieve our climate goals. For this reason, the implementation and impact of the financial sector’s climate commitments are of paramount importance and critical to the delivery of the Paris Agreement.

This is the second iteration of From Commitment to Action developed for the Net Zero Delivery Summit, tracking progress of financial services firms’ net zero commitments in both the UK and globally.

Produced jointly by Climate Policy Initiative and the City of London Corporation, the report assesses where financial services’ progress on the pathway to net zero has been strong, where it continues to fall short, and what this means for future climate action.