Sovcombank has become the first Russian bank to join the Net-Zero Banking Alliance (NZBA), an industry-led, UN-convened alliance of banks worldwide. The banks committed to aligning their lending and investment portfolios with net-zero emissions by 2050 or sooner, in line with the most ambitious targets set by the Paris Climate Agreement. Sovcombank intends to implement its decarbonization strategy in partnership with the international consultant Accenture.
Representing almost a quarter of global banking assets, with 98 members from 39 countries and $66 trillion in total assets, the Alliance is a critical step in the mobilisation of the financial sector for climate. It recognises the vital role of banks in supporting the global transition of the real economy to net-zero emissions, encompassing both operational and attributable emissions, including Scope 3 emissions.
Alliance members commit to:
- Set scenario-based interim targets for 2030 or sooner for priority sectors.
- Prioritize areas of most significant impact, i.e. the most greenhouse gas-intensive and emitting sectors.
- Annually publish emissions and emissions intensity.
- Take into account the best available scientific knowledge.
- Set first target(s) within 18 months of signing and report annually thereafter.
- Disclose progress against a board-level reviewed transition strategy.
The NZBA is convened by the United Nations Environment Programme Finance Initiative and is the banking element of the Glasgow Financial Alliance for Net Zero, chaired by Mark Carney, UN Special Envoy on Climate Action and Finance.
Dmitry Gusev, сhairman of the Management Board of Sovcombank, said: “National climate priority has strengthened our pathway to low carbon development and carbon neutrality. We are delighted to join the world’s leading banks and strengthen our ambitious plans to reduce greenhouse gas emissions.”
About Sovcombank
PJSC Sovcombank is a universal bank and one of the 10 largest banks in the country (with assets of RUB 1.9 trillion according to IFRS). The Bank employs 22,600 people in 2,629 offices located in 1,050 communities in 78 regions of Russia. The Bank serves 12.1 million customers, including 11.3 million borrowers, 600,000 depositors and 200,000 legal entities. Sovcombank has been assigned the following ratings from international agencies: a BB rating with a positive outlook from Standard & Poor’s, a Ba1 rating with a stable outlook from Moody’s and a BB+ rating with a stable outlook from Fitch Ratings. Its credit ratings from Russian agencies include an AA- rating with a stable outlook from ACRA, a ruАА rating with a stable outlook from Expert RA and an AA- rating with a stable outlook from National Credit Ratings agency.
About the Alliance
The industry-led, UN-convened Net-Zero Banking Alliance brings together almost one hundred banks representing over 40% of global banking assets, which are committed to aligning their lending and investment portfolios with net-zero emissions by 2050. Combining near-term action with accountability, this ambitious commitment sees banks setting an intermediate target for 2030 or sooner, using robust, science-based guidelines. The Alliance will reinforce, accelerate and support the implementation of decarbonisation strategies, providing an internationally coherent framework and guidelines in which to operate, supported by peer-learning from pioneering banks. It recognises the vital role of banks in supporting the global transition of the real economy to net-zero emissions.
