Net zero: Practical guide for finance teams of banks
The guide outlines the role finance departments play in supporting banks to achieve net-zero emissions, in light of the existential risk climate change poses. The report identifies practical steps for finance teams of banks, such as setting interim targets, measuring and reporting progress, and engaging with stakeholders to help their organizations make the transition to net-zero emissions.
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OVERVIEW
The report highlights that climate action failure represents an existential risk to society and the global economy, emphasising the critical role that finance teams within banks must play in supporting their organisation in transitioning to net-zero emissions.
What does it mean to be net-zero?
The Science-Based Targets initiative (SBTi) has defined what it means to reach net-zero emissions at the corporate level. To reach net-zero emissions, activities in an organisation’s value chain must achieve no net accumulation of carbon.
Lead the way
Finance teams can help their bank to achieve its net-zero goals by identifying the risks and opportunities of pursuing a net-zero strategy, developing the finance culture supporting the transition, engaging the board and executive management and incentivising action along the value chain.
Transform your decisions
The report recommends developing a net-zero pathway to bridge the emissions gap integrated into strategic planning and budgeting, developing integrated management information to track performance, for instance, by identifying and providing relevant data for climate scenario analysis tools.
Measure what matters
Measuring and tracking performance and embedding into business valuations are crucial in achieving net-zero goals.
Access finance
The report suggests reporting and disclosing on greenhouse gas (GHG) emissions using practical examples and indicates engaging with investors on net-zero. Finance teams within banks should manage external reporting and disclosure, critiquing tools and methodologies and evaluating report results for inclusivity.
Net zero top tips for CFOs
The report introduces top tips for finance teams of banks to help organisations progress towards net-zero emissions, such as understanding their net-zero status, developing a clear strategy and timescale, and engaging key stakeholders on net-zero.
Overall, finance teams within banks have a significant role to play in helping their institutions achieve net-zero goals, with practical guidance to help these teams implement net-zero initiatives, including risk and opportunity identification, strategy development, employee communication, investor relations management, measuring and tracking performance, and ultimately, making inclusive, responsible decisions to achieve net-zero emissions.
