Written by:
Future Group
22 November 2024
Future Group has launched a first-of-its-kind tool, RealZero Check, a free and open source, science-based tool designed to help investors and financial institutions set credible net zero targets and measure their decarbonisation progress.
Developed in partnership with the University of Technology Sydney's Institute for Sustainable Futures, RealZero Check uses the One Earth Climate Model to evaluate a portfolio's emissions against global carbon budgets, showing the decarbonisation pace needed to align with the Paris Agreement’s 1.5 degree target.
Despite widespread commitments to net zero by 2050, it’s challenging to gauge whether these pledges represent real, near-term progress needed to avert catastrophic climate impacts.
RealZero Check applies the carbon budgets necessary to limit warming to 1.5 degrees on a sector-by-sector basis so investors can see how their investments stack up against those carbon budgets, and where change might be necessary to really make progress towards net zero.
"RealZero Check is about real, measurable progress toward genuine emissions reduction, setting a new global standard for responsible investing and climate accountability,” said Simon Sheikh, Future Group CEO.
“With 79%* of Australians desiring climate-aligned net zero commitments from their financial providers, RealZero Check will help the financial services sector develop meaningful, authentic, science-backed net zero strategies.
“Furthermore, it will empower investors to make informed investment choices by breaking down portfolio emissions in a way they can easily compare their impact against scientifically backed benchmarks.
“It is not about ticking boxes or relying on carbon offsets. We believe this is a world-first, especially in that we are making this tool free and open source – anyone can use it. This aligns with Future Group’s commitment to supporting impactful climate action in the finance industry.
“We believe capital is the key to achieving net zero targets. We don’t have the time to wait until 2050, there is only a small window of opportunity to create real change. RealZero Check will help get the industry on track.”
The tool’s development complies with directives and crackdowns on greenwashing from regulatory bodies, including the Australian Securities and Investments Commission, which advocate for transparency in sustainability claims. It also serves as a valuable tool for both investors and regulators to combat misleading net zero claims.
Jeremy Cooper, Future Group’s Carbon Advisory Board External Chair, says that RealZero Check provides a much-needed resource for investors to validate their net zero commitments against climate science, aligning their financial decisions with a sustainable future.
"Unlike traditional models, RealZero Check focuses on genuine emissions reduction, helping investors avoid over-reliance on offsets and meet real climate goals.
“By offering this tool for free, Future Group is not only advocating for but actively supporting a climate-responsible investment landscape,” Mr Cooper said.
More information on RealZero Check
*According to Responsible Investment Association of Australasia research.
Amy Kirkwood
Acting Head of Communications, Future Group
amy.kirkwood@futuregroup.com.au
0481 517 441
Lauren Nowak
PR Partner
lauren@littlebigdeal.au
0400 434 299
