Financial Institution Net-zero Transition Plans
The challenge
As financial institutions make commitments to align their businesses and portfolios to net zero, many have begun to develop plans that demonstrate how they will achieve their climate goals. To support global ambitions to reach net zero by 2050, these net-zero transition plans must be science-based and include credible interim targets and implementation tactics. The following GFANZ working groups seek to build on the extensive progress that has already been made across the financial industry to articulate clear and consistent guidance in developing credible net-zero transition plans and address cross-cutting issues in transition plan design and implementation.
Financial Institution Net-zero Transition Plans
Objective
Develop globally applicable, pan-sector recommendations and guidance for transition planning by financial institutions and define the key components of a credible net-zero transition plan.
Reports
Financial Institution Net-zero Transition Plans – Fundamentals, Recommendations, and Guidance
November 2022
Additional Resources
Financial Institution Net-zero Transition Plans – Executive Summary
November 2022
Financial Institution Net-zero Transition Plans – Supplemental Information
November 2022
Sectoral Pathways
Objective
Develop guidance to support financial institutions’ use of sectoral pathways in the creation of net-zero transition plans, alignment of portfolios, and engagement with real-economy firms, consistent with climate science to achieve 1.5°C targets.
Reports
Real-economy Transition Plans
Objective
Develop a practical guide for financial institutions and the real-economy companies that they invest in, lend to, insure, and support with financial advice and products. Drawing on existing transition plans and climate guidance, this guide will be designed to serve as a reference for firms building and disclosing transition plans.
Reports
Measuring portfolio alignment
Objective
Develop voluntary guidance in order to provide practitioner-useful information and use cases for designing and implementing portfolio alignment metrics. This work additionally aims to drive convergence on best practice portfolio alignment methodologies by encouraging common approaches and transparency.
Reports
Measuring Portfolio Alignment: Driving Enhancement, Convergence, and Adoption
November 2022
Managed Phaseout of High-emitting Assets
Objective
Develop a credible net zero-aligned, managed phaseout approach for the operation and financing of high-emitting assets, with clear commitments around short-to-medium-term operation and financing and ultimate retirement in line with climate science.
Reports
