A new climate initiative has been launched to help advisory businesses measure, report and reduce their greenhouse gas emissions.
The Net Zero Financial Advisers Initiative, developed by climate action platform Net Zero Now, includes an industry roadmap that sets out a standard for Net Zero against which advisers can report and be measured.
It also features a dedicated, sector-specific digital platform providing a complete solution for users to calculate, report and reduce their emissions using tailored reduction plans.
A pilot study showed an average of 35 tonnes of greenhouse gas emissions per firm, with the advice sector estimated to be responsible for about 175,000 tonnes of greenhouse gas emissions in total.
Net Zero Now said that reduction targets of 30%, delivered over the next five years, could reduce emissions by around 50,000 tonnes. Longer-term, firms participating in the Net Zero Financial Advisers Initiative will be able to evidence their performance in reducing their emissions versus government benchmark figures and achieve a certification to confirm they are ‘On the Road to Net Zero.’
The initiative is supported by Liontrust and Fintel, the parent company of SimplyBiz and Defaqto, who helped to develop the roadmap with input from academics, climate experts and a pilot group of financial advisers.
Neil Ross Russell, managing director of Net Zero Now, said: “By showing that they take the transition to a more planet-positive future seriously, these firms are leading the way for the entire sector, and our wider economy, to take action. Net Zero Now exists to fight the climate crisis and boost business success – our experience across multiple sectors shows the two go hand in hand. Financial advisers that join this important Initiative can help attract and retain staff, reduce costs and meet the increasing demand from clients for firms aligned with their own climate commitments.”
Peter Michaelis, head of the Liontrust Sustainable Investment team, added: “Much of the focus for decarbonisation has been on large well-resourced companies. But it is critical that smaller businesses also take action. This Net Zero Financial Advisers Initiative offers a rigorous yet simple tool that advisers can use to plan their path and measure their progress to a zero carbon world. Liontrust is delighted to have supported its development.”
