To satisfy risk mitigation needs, meet ESG challenges and align with the Paris Agreement and the United Nations Sustainable Development Goals (SDGs), investors, clients and society are increasingly pressing banks to demonstrate how they are aligning their financing activities with global sustainability goals, particularly the transition to a net-zero, nature-positive economy.

To date, many banks – including UNEP FI members – have conducted impact analysis across their portfolios and set targets across identified impact areas and are now looking to move ahead with the implementation of those targets. Transition plans are the conceptual and practical backbone banks can use toward such implementation, offering a structured and forward-looking way that can help them to not only deliver against their sustainability commitments but also to build long-term business resilience and tap into new business opportunities.

“A Guide to Transition Plans for Banks: The path from targets to implementation” provides a clear and practical guide for banks that are looking to develop and advance their transition plans. The guide is cross-thematic and discusses the key concepts of transition planning for the banking sector. It also highlights emerging themes, tools and resources that banks can utilise to build their transition plans, such as the ones provided by the Glasgow Financial Alliance for Net Zero (GFANZ) and the Transition Plan Taskforce (TPT).  Additionally, the report offers support for banks assessing their clients’ transition plans, as well as provides insights into some sectoral transition levers which banks can utilise for financing the real-economy transition.

The guide also outlines some real-industry case studies of how advanced banks from different regions have approached or are approaching transition planning. As such the guide is a must-read for banking professionals working in sustainability, strategy, risk, and executive leadership roles. For questions about this guide, please contact Orestis Velentzas