CDP has integrated the guidance from GFANZ (Glasgow Financial Alliance for Net Zero) on net zero transition plans into its reporting system. This alignment enhances the ability of financial institutions to monitor progress toward net zero targets. Net-zero targets are increasingly common among financial institutions, and transformative actions are being guided by net-zero transition plans.

GFANZ has provided recommendations and guidance for credible net-zero transition plans, covering five themes and ten components. Transparency regarding both real economy and financial institution net-zero transition plans is crucial to ensuring finance supports genuine emissions reductions and a smooth transition, thereby addressing systemic risk.

As the world's largest annual disclosure platform for environmental actions across various entities, including companies, financial institutions, and cities, CDP is an excellent medium for disclosing transition plan elements. CDP previously outlined credible elements for real economy companies and recently released a technical note on Financial Services Transition Plans and Net Zero Commitments. This note demonstrates the connection between CDP climate indicators and the guidelines of GFANZ, UN HLEG, and the Investor Agenda.


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