This paper is one of a series of publications with the purpose of outlining possible choices banks can make when setting climate targets for sectors of the real economy. The paper does this by providing an overview of emerging practices, common challenges and policy, data, and other gaps.
Emerging practices and expertise for climate target setting are evolving quickly. This paper aims to increase banks’ awareness and understanding of useful approaches and the latest methodologies in this space at the time of publication.
By joining NZBA, members have already chosen to commit to:
◾ Aligning their lending and investment portfolios with net-zero emissions by 2050
◾ Setting intermediate climate targets for their highest emitting sectors for 2030 or sooner by using robust, science-based guidelines consistent with limiting global warming to 1.5°C
◾ Developing transition plans for the highest emitting sectors for which they have set targets
◾ Reporting annually on their approach to and progress towards meeting their targets
For many banks, this means setting decarbonisation targets for their Iron & Steel lending and investment portfolios.