‘Climate Target Setting for Oil & Gas Sector Financing’ is the fourth in a series of publications developed by members of the Net-Zero Banking Alliance (NZBA) with the goal of assisting banks by outlining the choices they make when setting climate-related targets for financing in different sectors of the real economy.
This report provides an overview of the design choices relevant for banks setting targets to reduce Scope 1, 2, and 3 emissions associated with their financing of the oil and gas sector. While the report includes an analysis of methodologies for climate target setting for oil and gas sector financing, it does not prescribe any particular methodology or impose any requirements on NZBA banks above the commitments each chose to make when becoming a member.
This paper can be used in conjunction with the Climate Risks in the Oil and Gas Sector report for banks looking to identify and manage climate-related risks associated with their financing of the oil and gas sector.