SBTi faces criticism over ‘silent’ change to net-zero framework

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🗞️ Driving the news: Global investors are reassessing their climate strategies as emissions reductions slow, despite many having met initial 2025 targets

🔭 The context: Early progress was often driven by portfolio reallocation, coal exits, and short-term efficiency gains, but deeper decarbonization is proving harder
• Structural challenges, including limited availability of low-carbon assets, reliance on offsets, and persistent exposure to high-emitting sectors, are now forcing investors to reconsider pathways toward 2030 and net-zero commitments
• Frameworks like Net-Zero Asset Owner Alliance and Glasgow Financial Alliance for Net Zero are under increasing scrutiny

🌍 Why it matters for the planet: A slowdown in emissions progress signals that easy wins are exhausted, and real-world decarbonization, especially in heavy industry and energy systems, is lagging
• Without stronger action, financial sector commitments risk losing credibility, potentially delaying capital flows needed for the global energy transition

⏭️ What’s next: Investors are expected to shift focus toward real-economy impact, including active engagement with companies, financing transition technologies, and tightening interim targets
• Greater emphasis will likely be placed on Scope 3 emissions, transition plans, and measurable outcomes, rather than portfolio-level metrics alone

💬 One quote: “The next phase of decarbonisation will be significantly harder than the first.” — Net-Zero Asset Owner Alliance

📈 One stat: Many investors successfully met 2025 interim climate targets, but are now revising expectations for 2030 due to slowing emissions reductions

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