Using the Net Zero Finance Tracker to Assess Financial Institutions’ Transition Plans Guidance document

The guidance document details how the Net Zero Finance Tracker (NZFT) monitors financial institutions' (FIs) transition to net zero. It maps NZFT indicators against nine global and regional frameworks—including GFANZ, UN HLEG, and the TPT—to ensure a robust tracking approach. The NZFT aims to exceed standard recommendations by applying more stringent criteria for target coverage, accountability, and evidence of positive climate engagement. While it covers most key transition elements, the document notes current data gaps regarding Just Transition and specific 2030 emission reduction thresholds.

• The NZFT methodology is based on a review of nine transition plan frameworks, including the GFANZ Transition Plan Framework, the UN HLEG on Net-Zero Transition Plans, and the Accelerate Climate Transition (ACT) for Finance Methodology.
• Certain transition plan elements are universally present across the analyzed frameworks, specifically the use of climate scenarios, the assessment of climate risks and opportunities, and the establishment of mitigation targets for 2050 or earlier aligned with a 1.5°C pathway.
• The NZFT applies more ambitious standards than standard transition plan recommendations in several areas, such as requiring portfolio coverage of over 90% for mitigation targets and demanding evidence of positive action, such as voting records for pro-climate resolutions.
• The NZFT currently cannot track three specific elements due to a lack of available data or methodology: Just Transition, the requirement to review interim mitigation targets every five years, and the alignment of targets with a 45% to 50% GHG emission reduction by 2030.
• Beyond transition plan tracking, the NZFT 2025 monitors specific impact indicators, including project-level transition financing, energy portfolio exposure to fossil fuels and clean energy, portfolio emissions, and exposure to physical climate risk.

APA

Li, S. (2025). Using the Net Zero Finance Tracker to Assess Financial Institutions’ Transition Plans Guidance document. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Using-the-NZFT-to-Assess-FI-Transition-Plans.pdf

Chicago

Li, Shengzi. Using the Net Zero Finance Tracker to Assess Financial Institutions’ Transition Plans Guidance document. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Using-the-NZFT-to-Assess-FI-Transition-Plans.pdf.

Wikipedia

{{cite report |last1=Li |first1=Shengzi |title=Using the Net Zero Finance Tracker to Assess Financial Institutions’ Transition Plans Guidance document |publisher=Climate Policy Initiative |date=November 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Using-the-NZFT-to-Assess-FI-Transition-Plans.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{li2025using, author = {Li, Shengzi}, title = {{Using the Net Zero Finance Tracker to Assess Financial Institutions’ Transition Plans Guidance document}}, institution = {Climate Policy Initiative}, year = {2025}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/10/Using-the-NZFT-to-Assess-FI-Transition-Plans.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }