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 should 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
Transition Finance
Objective
Develop technical guidance that further defines the GFANZ four key transition financing strategies as a supplement to the transition plan framework, and outlines considerations for potential decarbonization contribution methodologies.
Reports
Case Studies on Transition Finance and Decarbonization Contribution Methodologies
September 2024
Scaling Transition Finance and Real-economy Decarbonization, Supplement to the 2022 Net-zero Transition Plans report
December 2023
Index Investing
Objective
Develop draft guidance to help index participants develop and adopt “transition-informed” indices, creating a pathway for index participants to engage with companies and help support companies’ real-economy decarbonization.
Reports and Consultations
Nature in NZTP
Objective
Develop a practical supplement to the Net-zero Transition Planning framework containing globally applicable, pan-sector, voluntary guidance on how financial institutions can use management of nature to support their commitment and transition plan.
Reports and Consultations
Additional resources
Nature in Net-zero Transition Plans survey
Deadline: January 27, 2025
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
Portfolio Alignment Measurement
Objective
Develop guidance that facilitates the enhancement, convergence, and adoption of portfolio alignment to net zero by financial institutions.
Reports
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.
