IIGCC and TPI release framework of indicators to assess banks’ transition strategies

The Institutional Investors Group on Climate Change (IIGCC) and the Transition Pathway Initiative (TPI), an asset-owner led body, have published a framework of pilot indicators that can be used to assess a bank’s transition strategy. The indicators cover six areas ranging from net-zero targets and audits to climate policy engagement and climate governance. The report also includes an analysis of 27 banks, the results of which indicate a need to significantly accelerate decarbonisation efforts in the sector. According to the IIGCC: “The pilot indicators have been developed following significant investor consultation and tested on 27 banks from across the globe based on disclosures published up to 25 February 2022. While several of these banks have since released updated climate reports, the purpose of this pilot study was to test the validity of the proposed indicators and provide a baseline assessment of banks, ahead of improved reporting seen after the cut-off date.” The pilot indicators will now be subject to consultation and possible revisions before a final publication of indicators in late 2022.