‘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 make when setting climate-related targets for financing in particular sectors of the real economy. This includes key considerations in relation to the scope, portfolio metrics, data, and scenarios, emerging practices, common challenges and policy, data, and other gaps.
For many banks, the commitment they choose to make when joining NZBA requires them to set sectoral decarbonisation targets for their residential and commercial real estate financing. This publication is aimed at these banks in particular. It does not prescribe any particular methodology for banks to use or impose any requirements on NZBA member banks over and above the ones they chose to commit to when becoming a signatory.