Net Zero Banking Alliance (NZBA)
Established in 2021, on the initiative of the United Nations, the Net-Zero Banking Alliance (NZBA) aims to accelerate the sustainable transition to mitigate climate change through the involvement of the banking sector.
Joining the NZBA commits banks to align their credit and investment portfolios with the goal of net zero emissions by 2050, in line with the targets set by the Paris Climate Agreement and the European Green Deal, and to set an intermediate target by 2030 according to scientifically based scenarios, as well as to disclose the progress achieved.
Banco BPM resolved to join the NZBA in March 2023; following careful analysis and assessments, it identified 5 priority sectors that contribute more than two-thirds to the financial emissions of Banco BPM relevant to NZBA and which, based on the most recent data, are confirmed as the most relevant for contributing to climate change mitigation:
- Oil & Gas;
- Power generation;
- Cement;
- Automotive;
- Coal.
To this end, in August 2024 Banco BPM published the decarbonization targets for 2030 for these 5 most emissive sectors.
In particular, for sectors directly related to coal, Banco BPM has opted for a run-off strategy by 2026, confirmed in the update of the Strategic Plan 2024-27.
The NZBA Transition Plans outline the short-term actions already in place and the medium-long term actions that may need to be activated to achieve the targets.
For further information, please see our NZBA Transition Plans.
