Publications

Guidelines for Climate Target Setting for Banks – Version 2

Published March 2024

The original version of the Guidelines for Climate Target Setting for Banks, published to coincide with the launch of the Net-Zero Banking Alliance in April 2021 states that the guidelines, ‘…will be reviewed at least every three years.’ To meet this commitment, NZBA banks led a review of the original version of the guidelines from early 2023. A large number of member banks shared their views on what an updated version might look like, informed by their experience of applying the guidelines, setting and implementing climate targets, and financing transitions in different sectors. Based on these consultations, NZBA developed a new proposed version which the membership voted to adopt in March 2024.

The new version reflects changes in science, regulation, data, and methodologies that took place in the three years since the original version was published. It reinforces the guidelines, further outlining key principles to underpin the setting of credible and ambitious targets in line with achieving the objectives of the Paris Agreement. The updated version of the guidelines will apply to all new targets and any new iterations of existing targets set after 22 April 2024.

Download the report here

Supporting Notes for the Guidelines for Climate Target Setting – Version 2

Published May 2024
The ‘Supporting Notes for Version 2 of the Guidelines for Climate Target Setting’ offer clarification on several aspects of the ‘Guidelines for Climate Target Setting for Banks – Version 2’ which Net-Zero Banking Alliance (NZBA) member banks voted to adopt in March 2024. The updated version of the guidelines has applied to all new targets and any new iterations of existing targets set by NZBA member banks since 22 April 2024.

Download the report here

Net-Zero Banking Alliance Disclosure Checklist – Version 2

Published July 2024
This document serves as a concise checklist summarizing key requirements from the Guidelines for Climate Target Setting for Banks – Version 2, which members are expected to address on a comply-or-explain basis. Banks are encouraged to exceed these requirements where possible and consider all guidance provided in the complete Guidelines.

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Supporting Note: The Use of Carbon Credits in Climate Target Setting

Published September 2023
To support member banks in developing targets, the Net-Zero Banking Alliance (NZBA) has developed this short paper to provide clarification on the already-published Guidelines for Climate Target Setting for Banks outlining how it views the treatment of offsetting in relation to member commitments. The Alliance expects that any carbon credits used are consistent with the sectoral decarbonisation pathway of a selected climate scenario. Only carbon credits for which clients or the bank have provided evidence that they meet overall quality principles are considered eligible. Any inclusion of client-attributed carbon credits should be reported by the banks.

Download the report here

Net-Zero Banking Alliance 2024 Progress Report

Published October 2024

The Net-Zero Banking Alliance’s 2024 Progress Report provides a comprehensive overview of members’ efforts towards achieving net zero by 2050. It offers insights into members’ sectoral decarbonisation targets and transition planning, with fifteen case studies from member banks on topics including green finance, client engagement, and policy advocacy.

Download the full report here

Download the executive summary here

Net-Zero Banking Alliance 2023 Progress Update

Published December 2023

On Finance Day at COP28, the bank-led, UN-convened Net-Zero Banking Alliance published a Progress Update. This report provides a stocktake of new targets set by Alliance members, highlights a selection of green financing case studies from NZBA banks that showcase the large and growing opportunities across different sectors and asset classes, and summarizes relevant developments in climate-related voluntary frameworks and mandatory regulation.

Download the report here

Net-Zero Banking Alliance 2022 Progress Report

Published November 2022

On Finance Day at COP27, the bank-led, UN-convened Net-Zero Banking Alliance launched its first Progress Report. This report details the intermediate 2030 decarbonisation targets from over 60 member banks, with promising indicators of early progress in target setting. The publication also shares the Alliance’s wider vision for creating a predictable and enabling policy environment to accelerate the net-zero transition.

Download the report here

Climate Target Setting for Power Generation Sector Financing

Published October 2024

‘Climate Target Setting for Power Generation Sector Financing’ is the fifth 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 face when setting climate-related targets for financing in various carbon-intensive sectors of the real economy.

Download the report here

Climate Target Setting for Oil & Gas Sector Financing

Published May 2024

‘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 face when setting climate-related targets for financing in various carbon-intensive sectors of the real economy.

Download the report here

Climate Target Setting for Steel Sector Financing

Published May 2024

‘Climate Target Setting for Steel Sector Financing’ is the third 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 face when setting climate-related targets for financing in various carbon-intensive sectors of the real economy.

Download the report here

Climate Target Setting for Automotive Sector Financing

Published February 2024

‘Climate Target Setting for Automotive Sector Financing’ is the second 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 face when setting climate-related targets for financing in various carbon-intensive sectors of the real economy.

Download the report here

Climate Target Setting for Real Estate Sector Financing

Published December 2023

‘Climate Target Setting for Real Estate Sector Financing’ is the first 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 face when setting climate-related targets for financing in various carbon-intensive sectors of the real economy.

Download the report here

Target Setting for Capital Markets Activities

Published October 2024

‘Target Setting for Capital Markets Activities’ addresses challenges banks face in setting net-zero targets for capital market activities. In summarising the findings of 22 member banks, this supporting note explores four key areas: facilitated emissions, activity scope, target design options, and implementation considerations.

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Climate Mitigation Journey

Published May 2024

The Climate Mitigation Journey (CMJ) is a manual for banks outlining the business capabilities they need to build and iterate for years to come as they are looking to align themselves with the Paris goal of 1.5°C global warming and net zero, as part of their commitments under the PRB and/or NZBA.

Download the report here

Developing Metrics for Transition Finance

Published December 2023

Banks’ strategies for managing climate impact have matured, with banks moving from exclusionary policies and targeted sustainable finance to more wide-ranging engagement with clients, especially large corporates. This engagement is helping to encourage companies to set transition plans and to accelerate those plans which, in turn, will support banks’ net-zero strategies if banks have existing exposures to these clients. Financing provided to clients under such engagements is frequently described as “Transition Finance”. This paper discusses how banks may consider reporting their Transition Finance efforts. We see a need for additional specific metrics, as existing metrics may fail to provide a full picture of banks’ approaches to decarbonising their portfolios.

Download the report here

Transition Finance Case Studies

Published January 2023
To support Net-Zero Banking Alliance (NZBA) member banks in developing transition plans, the Alliance asked five NZBA member banks to share their approaches. This short paper shares insights from First Abu Dhabi Bank, Intesa Sanpaolo, La Bank Postale, SMBC, and Swedbank on how they define transition finance, the related goals they have and how they are translated into targets, and how these new approaches have been socialised and integrated within their organisations.

Download the report here

NZBA Transition Finance Guide

Published October 2022
Over the coming decades, banks will be called on to finance a radical and rapid transition of the global real economy, from a high volume of high-emitting activities towards a mix of lower-emissions activities which are holistically aligned with ‘net zero by 2050’ pathways. This Transition Finance Guide was created by the Financing & Engagement sub-track of the NZBA’s industry-led Implementation Work Track, and provides guidance to Alliance members and the banking industry for assessing opportunities, allocating effort, and advocating for supportive policies regarding transition finance for the real economy.

Download the report here

Blended finance case studies

Published December 2023

Public finance alone cannot provide the investment needed for the global economy to move towards and achieve net zero. Policy, projects, and financing solutions are needed to mobilise private capital. Here NZBA highlights recent case studies from member banks where the blending of public and private finance was key to their success.

Read the case studies here

Green financing in energy and industry

Published December 2023

The transition to net zero in energy and industry is a huge business opportunity for banks. Annual clean energy investments to meet growing energy demand in emerging and developing economies alone will represent an annual investment opportunity of as much as USD 2.8 trillion by the early 2030s. Here NZBA brings together recent examples of financing provided or facilitated by member banks in these key sectors in developed and emerging economies.

Read the case studies here