At the COP26 climate summit in Glasgow this week, the Luxembourg Stock Exchange (LuxSE) announced that it is now a signatory of the Net Zero Financial Service Providers Alliance (NZFSPA).
The NZFSPA is a global group of financial service providers committed to supporting the goal of global net zero greenhouse gas emissions by 2050 or sooner, in line with the ambition to limit the global temperature increase to 1.5°C above pre-industrial levels. The alliance is part of the broader Glasgow Financial Alliance for Net Zero (GFANZ) launched by Mark Carney, the United Nations (UN) Special Envoy on Climate Action and Finance.
The NZFSPA announced six new signatories at the COP26, including LuxSE. The alliance now covers 23 organisations across North America, Central America, Europe, Asia and Africa. Its overall goal is to accelerate the transition to a net zero economy.
“The Luxembourg Stock Exchange is truly honoured to be part of the Net Zero Financial Service Providers Alliance and is engaged in the overall goals of the GFANZ. Service providers, and especially exchanges, have a crucial role to play in accelerating the transition to a low-carbon and more inclusive economy", commented Julie Becker, CEO of the LuxSE. "We are working towards net zero emissions within our own operations and just as importantly, we commit to ensuring our products and services support a high ambition, engaging with all our clients and stakeholders on sustainability matters and supporting them in defining credible pathways to net zero greenhouse gas emissions. Global challenges require collective responses, and the NZFSPA can inspire action and accelerate the climate transition across our industry”.
NZFSPA is the only global alliance dedicated to net zero that focuses on service providers and is supported by the UN Sustainable Stock Exchanges initiative. Member organisations have committed to aligning all their relevant services and products to improve consistency in financial decision-making with achieving a net zero economy by 2050 at the latest. Alliance members will set Science Based Targets for their own emissions and have committed to report on their progress, including publishing disclosures aligned with the recommendations of the Taskforce on Climate-Related Financial Disclosures.
So far, six exchanges are members of the alliance: Luxembourg Stock Exchange, London Stock Exchange Group, Singapore Exchange, Hong Kong Exchange, Mexican Stock Exchange and Johannesburg Stock Exchange. Other signatories include Bloomberg, Morningstar, Moody’s, MSCI, Deloitte, KPMG, EY and PwC.