Emerging Practice: Climate Target Setting for Steel Sector Financing

This report outlines design choices for banks setting climate-related targets in steel sector financing. It offers methodological analysis for emissions reductions without prescribing specific approaches. This paper has been drafted with the aim of: - Providing support to banks that are looking to set targets for the I&S sector, to monitor and measure progress towards those targets, and take action towards the transition of the I&S sector in line with a 1.5°C pathway. - Outlining the critical components that banks need to consider to inform their key design choices with regard to the decarbonisation of their I&S portfolios. - Providing a high-level overview of the carbon measurement standards banks can apply in relation to their I&S portfolios. - Reflecting on current and commonly applied approaches relevant for I&S target setting by banks - Stating a call to action for other stakeholders