The food and agriculture sector accounts for roughly one-third of global greenhouse gas (GHG) emissions—making it both a major challenge and a critical opportunity for climate action. The most immediate gains lie in reducing on-farm emissions and in addressing land-use change emissions. These efforts can be complemented by enhancing carbon sequestration through sustainable practices. 

Setting climate mitigation targets in the food and agriculture sector remains a complex task for banks. Although some standards and benchmarks exist, no universal framework currently guides financial institutions through this process. This technical note provides guidance on how banks can set these targets and prepare for transition planning—presenting five case studies illustrating emerging practices among banks.