VP Bank signs up to the Net-Zero Banking Alliance
8 October 2021
VP Bank has joined the Net-Zero Banking Alliance founded by the United Nations. In so doing, the Liechtenstein-based private and intermediary bank has committed to aligning its lending and investment portfolios with net-zero emissions. The aim is to achieve this by 2050 at the latest.
VP Bank has become a member of the Net-Zero Banking Alliance (NZBA), a global alliance of banks established by the United Nations (UN). According to a press release, the bank will support the transition plans of its clients. In addition, the bank recognizes the urgent need for action to combat climate change, according to CEO Paul H. Arni. By 2026, VP Bank intends to operate on a climate-neutral basis. “Joining the Alliance reflects our ambition to play an active role in creating a positive impact for society and the environment”, Arni explains.
More than 50 banks from 29 different countries are already members of the NZBA. This alliance has committed to aligning their lending and investment portfolios with net-zero emissions by 2050 at the latest. Interim goals to be achieved by 2030 will be determined in due course. These will focus on priority sectors where the highest levels of greenhouse gases are produced. Members are supposed to define initial targets within 18 months of joining the NZBA, with annual reporting to be conducted thereafter.
The Net-Zero Banking Alliance is part of the Glasgow Financial Alliance for Net Zero (GFANZ), which is chaired by Mark Carney, UN Special Envoy on Climate Action and Finance. Both organizations were founded in the run up to the upcoming UN climate conference COP26, which runs from October 31 through to November 12, 2021 in Glasgow. According to its own information, the GFANZ offers a forum for executives from financial institutions right across the financial sector to strategically coordinate with the aim of achieving the goals of the Paris Agreement, thereby creating a global zero-carbon economy in the process.