Guidance on Use of Sectoral Pathways for Financial Institutions

Year Published

2022

Contributing Organizations

Glasgow Financial Alliance for Net Zero (GFANZ)

Type of Resource

Framework

Guidance

Languages

English

Korean

Japanese

Chinese

Relevant Topics

Core Topic

Sectors & Pathways

Topic 2

Climate Policies & Frameworks

Topic 3

Transition Plans

Target Audience

Asset Managers

Banks

Real Economy Corporates

Private Equity

Relevant Geography

Global

Resource Description

This resource offers guidance for financial institutions on using sectoral pathways to support net-zero target setting, transition planning, portfolio alignment, and engagement with clients. It introduces a framework to assess pathways based on scope, assumptions, and credibility.

Why This Matters

Clear, credible pathways help financial institutions align actions with climate goals and engage effectively with the real economy.

Key Insights

Sectoral pathways link carbon budgets to sector-specific emissions reductions
Intended for use across target setting, planning, implementation, and monitoring
Framework evaluates pathways by ambition, assumptions (eg, energy mix, technology), and feasibility
Compares five 15°C-aligned pathways and identifies differences in emissions, data granularity, and carbon removal reliance
Notes gaps in standardization, transparency, and regional detail

Secondary File Resources

Secondary Resource Link(s)

Guidance on Use of Sectoral Pathways for Financial Institutions - (Chinese)

Guidance on Use of Sectoral Pathways for Financial Institutions - (Korean)

Guidance on Use of Sectoral Pathways for Financial Institutions - (Japanese)

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