Commitment

My organisation commits to support the goal of net zero greenhouse gas emissions by 2050 or sooner, consistent with a maximum average global temperature rise of 1.5°C above pre-industrial levels.

The parties making this Commitment do so subject to any legal, regulatory, professional standards and professional or ethical obligations that apply to them.

In order to fulfil this Commitment, my organisation will:

1. Align* all relevant services and products to achieve net zero greenhouse gas emissions by 2050 or sooner, scaling and mainstreaming Paris Agreement-alignment into the core of our business.
2. Build internal capability to understand the risks and opportunities of the net zero transition using best-practice net zero methodologies ^[1] where they exist and, where methodologies or data are missing, proactively and collaboratively work to address those gaps.
3. Set an interim target for relevant services and products offered to be aligned to the net zero transition which is consistent with a fair share of the 50% global reduction in carbon emissions needed by 2030. Review and update such targets at least every five years with a view to increasing the proportion of services and products to achieve full alignment.
4. Address our own operational impacts by setting science-based emissions reduction targets across all operational emissions (Scopes 1 and 2 and, where material, 3) in line with 1.5°C emissions pathways. Set interim science-based reduction targets within 12 months of joining for no later than 2030 across all operational emissions. 
5. Consistently raise with our key stakeholders the importance and implications of setting net zero targets and strategies across Scopes 1, 2 and 3 emissions and understanding the impact businesses can have to help reduce GHG emissions ^[2].
6. Work to ensure our relevant services and products take into account the best available climate science, including credible emissions reduction pathways to net zero. Support innovation and prioritise our efforts where we have, or can have, the most significant impact. Support the development of products and services supporting the net zero transition.
7. Advance our efforts by proactively engaging with stakeholders and policy-makers on corporate and industry action, as well as public policies, that support a net zero transition of economic sectors in line with science and with regard to social impacts. Contribute to Glasgow Financial Alliance for Net Zero (GFANZ) efforts within the financial services provider alliance, which will aim to bring together existing tools and alliances.
8. Report progress, individually as firms signing this Commitment, at least annually, including publishing disclosures aligned with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD) ^[3] and climate action plans.

This Commitment must be read in the context of the supplemental text that follows which provides interpretative guidance to the Commitment text.

We recognise the vital role of service providers in supporting the transition to net-zero emissions. We make this Commitment with the understanding that our clients and stakeholders, including regulators, policy-makers and standard-setters, will endeavor to facilitate these objectives.

We will work in coordination with and seek to support the existing alliances including the Net Zero Asset Owner Alliance, Paris Aligned Investment Initiative, Net Zero Bankers Alliance and the Net Zero Asset Managers Initiative within the broader GFANZ.

We commit to engaging with policy-makers, regulators, peers and other stakeholders, consistent with applicable law and regulatory requirements, in order to pursue the objective of net zero alignment.

* The way in which a member aligns is up to the member at firm-level.

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Commitment items by Service Provider

#1

Service Provider	Commitment
Stock / Securities Exchange	Refers to the extent relevant and appropriate, to disclosure, market participation and/ or listing interventions or requirements and issuer tools and support.
Index Provider	Refers to the maintenance of existing and addition of new net zero aligned broad-based indices
Research and Data provider	Clear indication of incorporating net zero implications in research, rating and data provision
Auditor	Plan and perform audits in accordance with professional standards and related guidance issued by standard setters, including as they relate to climate-related matters, and commit to discharging obligations under professional standards as external auditors with quality, integrity, and independence

#2

As described

#3

All subsectors – meaningful targets to 2025 to be set within 12 months which are pertinent to each sub sector. The target should reflect the way in which the action taken will help to reach the interim target of a fair share of the 50% global reduction in carbon emissions needed by 2030. This point refers to target setting by the organization.

#4

As described

#5

Service Provider	Commitment
Stock / Securities Exchange	Listed companies, market participants and relevant securities
Index Provider	Investors using the indices
Research and Data provider	Issuers and investors as permitted by Research and Data providers the principle of independence and mitigation of conflicts of interest.
Auditor	As described

#6

Service Provider	Commitment
Stock / Securities Exchange	Demonstrate how disclosure, financing and other interventions are being aligned to appropriate net zero paths and sustainable solutions
Index Provider	Demonstrate how the net zero transition, using best available climate science where applicable, is reflected in relevant indices
Research and Data providers	Take into account the best available climate science where applicable, including credible emissions reduction pathways to net zero, and reflect in the evaluation of the relevant end products.
Auditor	As described

#7

As described

#8

Reporting format will be defined by the targets set for each sub-group to be developed within the next 12 months

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Footnotes

[1] Such as Science Based Targets initiative and alliance partners of Race to Zero and GFANZ. Best methodologies to incorporate scope 3 emissions as well as appropriate use of carbon offsetting should be incorporated.

[2] This commitment does not apply to service providers, including without limitation credit rating agencies, whose business model and/or regulatory obligations require them to maintain complete independence, both actual and perceived.

[3] As comprehensively as possible, while being cognisant that some sections do not directly apply to all signatories