Climate Target Setting for Oil & Gas Financing
Purpose of this Publication
The publication aims to outline the choices banks can make when setting climate targets for sectors of the real economy, specifically focusing on the oil and gas sector. It provides an overview of emerging practices, common challenges, and methodologies related to target setting, serving as a guide for banks' awareness and understanding of useful approaches in this evolving field.
Acknowledgements
The document was crafted by representatives of the UN Environment Programme Initiative (UNEP FI), the host of the Net-Zero Banking Alliance (NZBA) Secretariat. Contributions were made by the NZBA Oil & Gas Working Group and consulted with nearly 20 other banks and industry stakeholders. Key contributors included Société Générale and Deutsche Bank, with support from the NZBA Secretariat and external reviewers from BP plc, the Oil and Gas Climate Initiative, and the Carbon Tracker Initiative.
About the Net-Zero Banking Alliance
The NZBA is a bank-led, UN-convened alliance comprising over 40% of global banking assets. Its mission is to align lending and investment portfolios with net-zero emissions by 2050 through setting intermediate climate targets for 2030 or earlier, utilizing robust scientific guidelines. As part of the Glasgow Financial Alliance for Net-Zero (GFANZ), the NZBA offers an internationally coherent framework and guidelines for decarbonization strategies, fostering peer learning among pioneering banks.
Abbreviations & Acronyms
A list of abbreviations and acronyms is provided for clarity, covering terms pertinent to the oil and gas sector, target setting methodologies, and financial instruments.
Summary
The publication serves as a guide for banks looking to set climate targets for the oil and gas sector, emphasizing the importance of aligning with net-zero emissions goals by 2050. It outlines key aspects such as target setting, metrics, financial scope, attribution methods, and operationalization steps. The document acknowledges the evolving nature of climate target setting practices and encourages banks to adopt informed approaches based on the latest methodologies and guidelines.
