GFANZ publishes guidance on financial institution net zero transition plans

The Glasgow Financial Alliance for Net Zero (“GFANZ") has published its final report on recommendations and guidance on financial institution net zero transition plans (“NZTPs"). The final report advises firms on setting up NZTPs, advising that financial institutions focus on four key transitions strategies.

These four strategies are the financing and enabling of:

1. Entities and activities that develop and scale climate solutions;
2. Entities already aligned to a path towards a maximum global temperature rise of 1.5°C;
3. Entities and activities committed to transitioning towards a maximum global temperature rise of 1.5°C; and,
4. The accelerated managed phaseout of high-emitting physical assets, such as fossil fuel power plants.

Additional examples and guidance beyond the final report can be found in the supplemental information document. The report follows a GFANZ consultation launched in June 2022.

For another recent GFANZ report – setting out steps to mobilise emerging markets capital in the climate transition – please see here.

The final report published on 1 November 2022 is available here.