The NZBA Progress Report

Published November 2022.

On Finance Day at COP27, the industry-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.

Alliance Resources

The Net-Zero Banking Alliance’s three Work Tracks support and accelerate banks’ net-zero transition by creating implementation guidance, aiding improved target setting, and outlining sectoral approaches as appropriate. The research and guidance papers provided below were generated by the Alliance Work Tracks to equip members with the necessary tools for rapid change.

Supporting Notes for the NZBA Guidelines for Climate Target Setting for Banks

Published August 2022.
This paper, produced by the NZBA’s industry-led Implementation Work Track, support its foundational Guidelines for Climate Target Setting for Banks. These Supporting Notes offer clarification on several aspects of the Guidelines, including variations in methodological approaches to target-setting, the materiality of Scope 3 emissions, and the implications of Covid-19 on baseline year measurements.

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.

Partner and Supporter Resources

The Net Zero Banking Alliance seeks to support its members with information from trusted partners and supporters that will aid their transition to net zero. Below is a continuously-updated collection of expert research, peer examples, and best practices from NZBA’s partners, supporters, and members.

Mind the delivery gap: Achieving net zero through finance and policy

Published October 2022.
This report from our partners at UK Bankers for Net Zero explores the significant gaps between banks’ decarbonisation ambitions and what they need to achieve under the Net Zero Banking Alliance commitment, specifically for SMEs and retrofits. Banks stand ready to mobilise resources and expertise to help decarbonise the real economy. However, a quid pro quo needs to be recognised if banking’s potential is to be fully realised– policymakers must address the substantial policy blockers that exist across these two key areas.

How to align with the Paris Agreement – A Resource Note for Banking Associations and Banks

Published June 2022.
This paper provides further insights into how banking associations, along with their members, can align with the Paris Agreement by formulating joint objectives through commitments and opportunities for collaboration. Following the important work of UNEP FI in providing clear guidance, this paper contends that banking associations or a group of frontrunner banks can pave the way for smaller institutions by setting up national commitments and can provide a platform to engage with the government on challenges and obstacles.

The Good Transition Plan

Published November 2021.
The Climate Safe Lending Network published The Good Transition Plan as a practical, actionable guide for banks to create effective climate transition plans. The Good Transition Plan gathers the best thinking, emerging best practices, and stakeholder expectations from over 100 climate-finance experts and professionals from around the world. It presents a structured approach to net-zero planning, with practical insights from sustainable finance leaders, including bankers, investors, policymakers, civil society organizations, and academics.

Sustainable Markets Initiative: Net Zero Practitioner’s Guide

Published 20 October 2021.
The Prince of Wales’ Financial Services Task Force (FSTF) Net Zero Practitioner’s Guide is designed to support the implementation of banks’ net zero commitments and meet the growing need for specificity. Focusing on client emissions related to bank financing, as opposed to banks’ own operational emissions, the FSTF Guide is designed to help banks deliver on the critical role they must play in actively supporting their clients to transition.

Podcast: Green Conversations – Chartered Banker Institute & NZBA

Released 19 October 2021.
Hosted by Simon Thompson, Chief Executive of The Chartered Banker Institute and author of Green and Sustainable Finance: Principles and Practice.    Simon is joined by our first Guest in our Green Conversations podcast series – Sarah Kemmitt, a consultant to UNEP FI, working with the Net Zero Asset Owner and Net Zero Banking Alliances.  With a background in environmental science, Sarah’s early career focussed on habitat conservation and research into carbon and nitrogen cycling in agroecosystems.  Following the financial crisis, Sarah took the opportunity to move into banking regulation and internal audit. In recent years she combined these career paths, contributing to the Bank of England’s work on the regulation and supervision of climate risks.

GFANZ: Policy Call-to-Action

Published 11 October 2021.
In this Call to Action, the global financial services industry calls on G20 governments to help build a net-zero economy and meet the goals of the Paris Agreement ahead of COP 26. It includes specific policy requests across 5 topics and was published by the Glasgow Financial Alliance for Net Zero (GFANZ) – of which the Net Zero Banking Alliance is the banking element – and is endorsed by the GFANZ CEO Principals Group.

WWF: Net Zero: An introductory guide for financial institutions

Published July 2021.
Leadership in the field of sustainable finance is increasing in ambition and robustness, and the level of ambition is ratcheting up to reflect the urgency of the need to shift capital and align portfolios. This guide looks to support financial institutions in navigating the technical questions they may ask themselves when assessing their portfolio for alignment with a Net Zero scenario and answer some of the key technical challenges which will support the implementation of robust, science-based strategies.

 

The resources on this page are being provided as a convenience and for informational purposes only; they do not necessarily constitute an endorsement or an approval by the Net Zero Banking Alliance or any of its member organisations. UNEP FI and the Net Zero Banking Alliance bears no responsibility for the accuracy, legality or content of the documents provided by external sources.