We support financial institutions and companies to align portfolios with the Paris Climate Agreement, the Kunming-Montreal Global Biodiversity Framework, and the UN Sustainable Development Goals through target-setting and transition planning.

We do this by encouraging them to join initiatives such as UNEP-FI led Net Zero Asset Owner Alliance and by developing tools and guidance such as the WWF-CDP Temp Rating Methodology and criteria for credible net zero commitments and tranistion plans.

Our Net Zero Introductory Guide for Financial Institutions (in English and French) provides an overview of some of the key principles and concepts linked to setting net-zero targets, as well as market expectations for developing credible targets.

It will help financial institutions navigate the technical questions they face in assessing portfolio alignment with a net-zero scenario, and meet some of the key technical challenges involved in implementing robust, science-based strategies.

The CDP WWF Temperature Rating Methodology (September 2024) is an open source methodology which translates corporate emissions reduction targets into a single, intuitive metric, and assesses what degree of warming a company or a financial portfolio contributes. The methodology is a core part of SBTi for Finance designed to enable financial institutions to set emissions reduction targets for lending and investment portfolios, and is available to over 325,000 investors globally via numerous data providers, including Bloomberg, CDP, Clarity AI and ICE (Intercontinental Exchange, owner of the New York Stock Exchange).

LINKS

• CDP WWF Temperature Rating Methodology (September 2024)
• WWF ITR Tool
• WWF ITR Tool Technical Documentation
• WWF ITR Tool Easy-to-Use Example and Method Overview

Private sector transition plans are a crucial lever for accelerating action on climate and nature.

Building on existing frameworks, WWF has set out criteria for credible climate and nature transition plans for financial institutions that drive ambition, promote best practice, and support the adoption of robust international standards. These include:
 

• Ambition and Prioritization - commit to net zero in line with 1.5°C warming; set science-based (interim) targets; identify high-impact decarbonization levers or actions.
• Nature and Just Transition - commit to nature-protection and restoration goals; manage risks and opportunities of nature; capitalize on nature as a carbon sink and resilience measure; enable a “just” transition.
• Action and Implementation - adopt policies that commit to fossil fuel phase-out; scale up financing for climate and nature-based solutions; implement credible engagement strategies and escalations processes.
• Accountability and Verification - establish clear governance structures; seek third party verification; transparently report on progress and results.
• Feedback and Flexibility - embed flexibility into implementation; ensure material updates inform future iterations of plans; enact clear adjustments if there are deviations from targets.

Faced with biodiversity loss and ecosystem collapse, companies and financial institutions can no longer afford to view nature as an externality and must integrate nature into climate transition planning.

WWF's 'Catalysing Change' report offers guidance, tools and recommendations on aligning business practice with global nature goals.

To ensure credible nature transition plans, businesses should:
 

• conduct double materiality assessments
• align strategies and business models with global goals on nature and climate
• set science-based targets appropriate to local contexts and ecosystems
• resource and properly finance clear action plans
• engage all relevant stakeholders
• establish robust, organisation-wide governance and responsibility
• set up monitoring, reporting and verification systems