The Glasgow Financial Alliance for Net Zero (GFANZ) has released a new pan-sector framework for financial institution transition planning, supporting actionable strategies and unprecedented accountability on net-zero commitments.

The framework for Financial Institution Net-Zero Transition Planning, and guidance on measuring portfolio alignment will help transition as GFANZ also works on methods to mobilise capital to emerging markets and developing economies (EMDEs) to support their net-zero transitions, including developing new blended finance instruments and high-integrity carbon markets.

Since global private finance pledged to advance climate action at COP26, GFANZ members have been individually implementing their commitments by setting strategies and starting to work on delivering them. To support these efforts, GFANZ’s net-zero work programme provides financial institutions with voluntary guidance and tools, so that each financial institution can drive real-economy emissions reductions.

To build a globally consistent pan-sector approach, GFANZ members have developed voluntary guidance to support all financial institutions in their net-zero transition planning. The Financial Institution Net-zero Transition Plan outlines how to develop a transition plan as a set of strategic goals, implementing actions and accountability mechanisms, that turn net-zero commitments into action. The framework was developed with input from a wide range of practitioners, technical experts, and stakeholders, building on emerging best practices and incorporating feedback from a broad public consultation. The framework addresses the investments, financing, insurance, and the related products and services necessary to support real-economy net-zero transition.

GFANZ has also issued a call to action to G20 governments to close the gap between their climate commitments and policies through their own transition planning and reform of the international financial architecture.

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