Understanding Opportunities Is Key to Developing Climate Transition Strategies for Financial Institutions

Report examines transition planning for financial institutions working to align their portfolios to a net-zero pathway

COP26 highlighted the importance of global financial institutions scaling up investments in climate action and aligning financing activities with 1.5° C and net-zero targets. One key aspect is bridging data gaps to manage climate associated risks. Analysis of the changing climate landscape is vital to understanding both risk management and alignment of capital to emissions outcomes.

In collaboration with HSBC, Guidehouse and WWF have published the report, Net-zero scenario analysis for finance sector transition planningwhich addresses a critical component of transition planning by analyzing 1.5° C-aligned decarbonization pathways for key sectors such as primary energy, power, cement, steel, shipping, automotive and agriculture, forestry, and other land use.

The report underscores the urgency for businesses to align to net-zero and provides a comparison of current emission scenarios. It also offers technical steps financial institutions can take to reach their targets and examines the role of climate scenario analysis in setting science-based targets and developing a climate strategy that benefits not only the institutions themselves, but their customers as well.

For more information, read the report here.

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