GFANZ (Glasgow Financial Alliance for Net Zero)

The Glasgow Financial Alliance for Net Zero (GFANZ) is a global coalition of financial institutions (banks, insurers, asset managers, asset owners) committed to accelerating the decarbonisation of the global economy and reaching net zero GHG emissions by 2050. GFANZ was established at COP26 in November 2021 and encompasses over 675 member firms managing over $150 trillion in assets. Member institutions must commit to: setting science-based net-zero targets covering all emission scopes; regularly reporting progress; reviewing targets every five years; and aligning portfolio activities with net-zero pathways.

GFANZ (gfanzero.com); GFANZ Net Zero Transition Plans Guidance (2022 and 2023 updates); COP26, November 2021.

GFANZ membership signals to investors, regulators, and stakeholders that a financial institution has formally committed to net-zero portfolio alignment. For manufacturers and corporate borrowers, GFANZ commitments by their financiers create pressure to disclose credible transition plans, set SBTi-aligned targets, and reduce Scope 3 emissions. Companies seeking green finance or sustainability-linked loans will increasingly need to demonstrate emissions reduction credibility to GFANZ-member lenders.