Rationale
1. What is the Foundations theme within the GFANZ NZTP framework?
The Foundations theme encompasses the articulation of the organization’s objective to reach net zero by 2050 or sooner and the prioritization of the four key financing strategies to achieve this aim.
2. What is the importance of the Foundations theme?
- Clear net-zero objectives along with priority key financing strategies provide clarity to internal and external stakeholders and allow comparisons with other organizations.
- Clarity on Foundations is a key point to transition planning influencing decisions along the other four themes.
Four key financing strategies
3. How can the four key financing strategies be incorporated into the Foundations theme?
- Once the organization’s net-zero objective has been articulated, the existing business model and operations should be reviewed to identify key areas where the four key financing strategies may be prioritized.
- Instead of paper decarbonization, prioritization of these financing strategies enables financial flows to reduce real-economy emissions, furthering the global goal of net zero by 2050.
Setting Objectives and priorities
4. What are the considerations in setting Objectives and priorities?
- Objectives and priorities outline how the net-zero transition commitment will be embedded within the wider organization and corporate strategy.
- Clarity on coverage, timelines, and key climate topics can guide the transition plan, ensuring high-level commitments are translated into action.
- Depending on the unique circumstances of the financial institutions, the four key financing strategies can be prioritized to different degrees.
- When communicating about Objectives and priorities, the prioritization of the financial strategies and impacts of transition planning on business strategy are prominent considerations.
Just transition and nature
- Some transition activities may have unintended negative effects, while others can offer co-benefits
- GFANZ believes the transition should be JUST TRANSITION and should strengthen nature and biodiversity
- Decarbonization and real-economy emissions reduction must always be the primary focus, but carbon removal credits may be used to neutralize emissions that are not feasible to eliminate
More details in the workshop: GFANZ NZTP THEME: FOUNDATIONS
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