Net-zero transition plans are essential to deliver real-world emissions reductions in line with achieving global net zero by 2050 and limiting warming to 1.5 degrees Celsius. The lack of consistent frameworks contributes to the barriers businesses face as they seek to accelerate the net-zero transition and adjust their business strategy with credible, science-based targets.
This report serves as a practical guide for companies in the real economy when building transition plans and disclosing progress against them. It outlines the components of transition plans that financial institutions will be looking for from companies in the real economy to inform their allocation of capital and services, and how they engage.
It also aims to help real-economy companies understand and navigate the growing expectations from financial institutions that are aligning their investment and finance strategies with net zero.