Since the Paris climate agreement, most banks and asset managers have committed themselves to a net zero strategy to be in line with a 1,5-degree global warming scenario. But what does net zero exactly mean? And why is it important for financial institutions to have a net zero strategy in place? 

Quentin Aubineau, Bank Track

Quentin Aubineau, Policy Analyst at BankTrack, keeps track of the progress banks are making and explains the importance of the commitments. He emphasises that having a net zero goal is nice but having a concrete action plan in place to get there is even more important. According to him, this is still lacking in many cases. 

Triodos Bank, including Triodos Investment Management, committed itself to be net zero in 2035 – which is a very ambitious target compared to the rest of the sector where 2050 is the most common goal. Sven Renon, Impact Manager at Triodos Bank, is keeping track of the progress Triodos is making towards its own net zero goal. He explains what sets Triodos' net zero ambition apart from other financial institutions and what are the challenges he is facing in the process.

Triodos Bank's net zero commitment: As One To Zero

Triodos Bank has set the ambitious target to reach net zero by 2035 at the latest. Our target not only covers emissions from our own operations (Scope 1 & 2), but also emissions from our entire portfolio of loans to customers and from the complete range of funds managed by Triodos Investment Management (Scope 3). We aim to reach this target by reducing our own emissions and the emissions of the activities we finance. We also invest in Nature-based Solutions that remove carbon from the atmosphere.

But it’s not enough if only Triodos reaches net zero. The entire world needs to change. Therefore, we also use our voice and leverage our influence to push for broader change. For example, we are vocal about the shortcomings of climate policies and summits, push the financial sector to be more ambitious and advocate for a global fossil fuel non-proliferation treaty.

Find out more about Triodos Bank's net zero commitment here

In conversation with Karel Nierop, Head of Products & Solutions at Triodos Investment Management, they discuss why the progress on net zero ambitions within the financial sector is lagging behind and what needs to change within the sector as a whole to keep the ambitions of the Paris agreement alive.

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