GFANZ facts for kids
The Glasgow Financial Alliance for Net Zero, often called GFANZ, is a large group of financial companies. It was created during a big climate meeting called COP26 in Glasgow. GFANZ describes itself as a worldwide team of important financial groups that want to speed up the process of making the economy carbon-free.
Michael Bloomberg, who is a special envoy for the UN on climate, and Mark Carney, another UN special envoy for climate finance, are the main leaders of this group. Mary Schapiro is the Vice Chair and also leads the group's main office.
What is GFANZ?
GFANZ works to help the world reach the goal of the Paris Agreement. This agreement aims to keep the global temperature from rising more than 1.5 degrees Celsius. GFANZ helps financial companies get the tools and support they need to reach their "net-zero" goals. Net-zero means balancing the amount of greenhouse gases put into the atmosphere with the amount taken out.
Who is Part of GFANZ?
This group includes over 160 companies that manage more than $70 trillion in assets. That's a huge amount of money! Companies that want to join GFANZ must be approved by the UN's "Race to Zero" campaign.
To join, companies must also:
- Use scientific plans to reach net-zero emissions.
- Cover all types of their emissions.
- Set goals for cutting emissions by 2030.
- Promise to report their progress clearly and openly, following the UN Race to Zero rules.
How Does GFANZ Work?
GFANZ also includes other groups that are already working towards net-zero finance. These include the Net Zero Asset Managers Initiative, the UN-convened Net-Zero Asset Owner Alliance, and the Net-Zero Banking Alliance. By bringing these groups together, GFANZ helps them work more effectively to fight climate change.
