This report provides an overview of how banks are approaching decarbonization target-setting in the aviation sector, a hard-to-abate industry with growing emissions and limited short-term alternatives for decarbonization.

It outlines key methodological considerations, including benchmark selection, emissions scope, portfolio coverage, and metrics for measuring alignment, drawing on frameworks such as the Pegasus Guidelines. It highlights emerging market practices, particularly the use of emissions intensity targets, and identifies key levers such as fleet modernization and sustainable aviation fuel to support transition efforts.

This practical guidance is intended to help banks develop, refine, and implement aviation-related transition strategies in line with evolving methodologies and data availability.