Guidance on Use of Sectoral Pathways for Financial Institutions

This guidance document supports financial institutions on the use of sectoral pathways, in line with their respective institutional and/or client transition goals. This document offers voluntary guidance and a framework to help financial institutions evaluate the suitability of sectoral pathways in their transition planning process and implementation efforts. To achieve these goals, this report introduces the landscape of sectoral pathways, and the GFANZ pathway framework, which aims to promote consistency in the use of pathways for decision-making. A comparison using this framework on five 1.5 degrees Celsius global pathways is summarised and derived insights are provided into limitations and areas for further development. Developers and users of pathways seeking further details are directed to the appendices for pathway definitions, pathway archetypes, and the comparison exercise.