Net zero in financial services

Develop your net zero ambition and targets for decarbonizing financed emissions, including:

• Creating a business case for decarbonization of financed emissions.
• Setting ambitions and developing climate governance structures.
• Determining appropriate decarbonization scenarios and transition pathways most appropriate for the book of business.

Defining decarbonization levers and assessment of whether this is sufficient to meet targets including:

• Assessment of potential target-setting methodology approaches across asset classes and sectors.
• Setting mid-term (2025 and 2030) and long-term (2050) financed emissions reduction targets aligned with the chosen transition pathway.
• Setting targets for investment in climate services solutions.
• Internal communications and employee engagement plan.

Design a financed emissions decarbonization strategy and operationalize this through a net-zero program, including:

• Assessing suitability of decarbonization approaches across the portfolio, including engagement, divestment and scale up of climate solutions.
• Prioritization of levers by (1) impact on emissions, (2) impact on risk, (3) cost and (4) impact on customers; resulting in a shortlist of feasible levers.
• Setting up of a net-zero program, including operating model with workstreams for each lever in each business unit.
• Develop and publish decarbonization policy, including stance on participation choices, engagement and explicit criteria for "green" financing, investments and/or insurance.

Communicate your financed emissions decarbonization approach and performance. Periodically review and adjust approach, including:

• Develop internal metrics and monitoring mechanisms to track progress in relation to your decarbonization strategy.
• Design of transition plan with respect to peer and market expectations.
• Integration of transition plans into wider external sustainability reporting and disclosures.