Foundations of Climate Mitigation Target Setting

This is a guidance document that introduces banks and bankers to key stages in the climate mitigation journey and should be seen as a starting point for further research. These stages are not necessarily sequential but often are run iteratively and in parallel: - The first stage introduces the concepts, frameworks, and regulations that may affect a bank’s business, based on the latest climate science. - The second stage outlines key considerations in the measurement and disclosure of financed emissions, which is essential to understanding a bank’s portfolio and the extent of its impacts on climate. - The third stage describes how to set robust, science-based targets that to give banks a mid-to-long-term strategic direction for financing decisions and the integration of climate impact in all aspects of their business. - The fourth stage is all about meeting those targets and having a positive impact.