Net-ZeroBankingAlliance2022ProgressReportNovember20222022ProgressReportiContents|?2022UnitedNationsEnvironmentProgrammeThispublicationmaybereproducedinwholeorinpartandinanyformforeducationalornon-profitserviceswithoutspecialpermissionfromthecopyrightholder,providedacknowledgementofthesourceismade.TheUnitedNationsEnvironmentProgrammewouldappreciatereceivingacopyofanypublicationthatusesthispublicationasasource.NouseofthispublicationmaybemadeforresaleoranyothercommercialpurposewhatsoeverwithoutpriorpermissioninwritingfromtheUnitedNationsEnvironmentProgramme.Applicationsforsuchpermission,withastatementofthepurposeandextentofthereproduction,shouldbeaddressedtotheDirector,CommunicationDivision,UnitedNationsEnvironmentProgramme,P.O.Box30552,Nairobi00100,Kenya.DisclaimersThedesignationsemployedandthepresentationofthematerialinthispublicationdonotimplytheexpressionofanyopinionwhatsoeveronthepartoftheSecretariatoftheUnitedNationsconcerningthelegalstatusofanycountry,territoryorcityorareaoritsauthorities,orconcerningthedelimitationofitsfrontiersorboundaries.Forgeneralguidanceonmattersrelatingtotheuseofmapsinpublicationspleasegoto/geospatial/Mentionofacommercialcompanyorproductinthisdocumentdoesnotimplyendorse-mentbytheUnitedNationsEnvironmentProgrammeortheauthors.Theuseofinforma-tionfromthisdocumentforpublicityoradvertisingisnotpermitted.Trademarknamesandsymbolsareusedinaneditorialfashionwithnointentiononinfringementoftrade-markorcopyrightlaws.TheviewsexpressedinthispublicationarethoseoftheauthorsanddonotnecessarilyreflecttheviewsoftheUnitedNationsEnvironmentProgramme.Weregretanyerrorsoromissionsthatmayhavebeenunwittinglymade.?Maps,photosandillustrationsasspecifiedSuggestedcitation:UnitedNationsEnvironmentProgramme(2022).Net-ZeroBankingAlliance2022ProgressReport.Production:UNEPFinanceInitiativeURL:/net-zero-banking/ISBN: 978-92-807-3981-7Jobnumber: DTI/2479/PA2022ProgressReportiiContents|ImportantnoticeThisisaprogressreportregardingtheactivitiesoftheNet-ZeroBankingAlliance(“NZBA”)sinceitslaunchinApril2021.Thisreportdoesnotcreatelegalrelationsorlegallyenforceableobligationsofanykind.TheNZBASecretariatconfirmsthatithasobtainedallIPrightsinrelationtoanythird-partymaterialsorinformationincludedinthereport.Theinformationinthisreportdoesnotpurporttobecomprehensiveanddoesnotrenderanyformoflegal,tax,investment,accounting,financial,orotheradvice.ThisreportismadeavailablebyNZBAandhasnotbeenindependentlyverifiedbyanyperson.Nothinginthisreportconstitutesanofferorasolicitationofanoffertobuyorsellanysecuritiesorfinancialinstrumentsanddoesnotconstituteinvestmentadviceorarecommenda-tionbyanypersonofaninvestmentordivestmentstrategyorwhetherornotto“buy,”“sell”or“hold”anysecurityorotherfinancialinstrument.Thereportisforinformationalpurposesonlyandtheinformationcontainedhereinwaspreparedasofthedateofpublication.MembershavesigneduptotheambitiouscommitmentsoftheNZBAandarenotautomaticallyexpectedtoadoptanyapproachcommunicatedwithinthisreport.Membersretaintheirowndiscretionindevisingplansandsettingtargetstoimplementtheirrespectiveinitiatives.Norepresentation,warranty,assurance,orundertaking(expressorimplied)isorwillbemade,andnoresponsibilityorliabilityisorwillbeacceptedbyanymemberofNZBA,itssecretariatorbyanyoftheirrespectiveaffiliatesoranyoftheirrespectiveofficers,employees,agents,oradvisorsincludingwithoutlimitationinrelationtotheadequacy,accuracy,completeness,orreasonablenessofthisreport,orofanyotherinformation(whetherwrittenororal),notice,ordocumentsuppliedorotherwisemadeavailabletoanyinterestedpartyoritsadvisorsinconnectionwiththisreport.2022ProgressReportiiiContents|ImportantnoticeAcknowledgementsThisProgressReportwascompiledandwrittenbythemembersoftheUnitedNationsSecretariatoftheNet-ZeroBankingAlliance.Thereporthasthefollowingjointauthors:AliceAnders AdrienneCleverly SarahKemmitt SarahZaidiMaudBuytaert TriciaHolland SimonMessengerTheSecretariatwouldliketothankthemembersoftheAllianceSteeringGroupfortheirreviewandcontributions:Dr.DaliaAbdelkader AlexandraLiftmanCIB BankofAmericaAntoniBallabrigaTorreguitart TraceyMcDermottBBVA StandardCharteredIvanFrishberg JoséLuisMu?ozAmalgamatedBank BanorteHyeSookMoon CurtisD.RavenelKBFinancialGroup SeniorAdvisortoMarkCarneyAdrienneHorel-Pagès ValSmithLaBanquePostale CitiTomoIshikawa CelineSuarezMUFG MorganStanleyPeterKanningHSBCTheSecretariatwouldalsoliketoexpressitsgratitudetothefollowingpeoplefortheirreviewofandcontributionstothisreport:AdamGarfunkelandHelenStieger,Junxion2022ProgressReportivContents|AcknowledgementsContentsImportantnotice iiiAcknowledgements ivForewords viExecutivesummary xIntroduction 1AbouttheNet-ZeroBankingAlliance 1ThecommitmentofAlliancemembers 1Intermediatetargets 3Methodologyandlimitations 3Responserate 3Keytakeaways 4Notesonsectorassessmentanddiscussion 4Sectortargets—analysis&discussionofperformancesplitbysector 6GovernanceoftheAlliance 14TheAlliance’svisionforchange 15Principles 15Priorities 16Deliveringchange:introductiontotheWorkTracks 18ImplementationWorkTrack 18SectorWorkTrack 19OutreachandRecruitmentWorkTrack 20Lookingtothefuture:theAlliance’soutlookfor2023andbeyond 22Furtheractionareas,basedonanalysisoftargetspublishedtodate 22Calltoaction:requestsofpolicymakers,regulators,andotherstakeholders 24Annex 26Glossary 34Keyterms 36References 372022ProgressReportvContents|ForewordsTraceyMcDermottChair,SteeringGroupoftheNet-ZeroBankingAllianceGroupHeadofConduct,FinancialCrimeandComplianceatStandardCharteredBankJustover18monthsago,theNet-ZeroBankingAlliancewaslaunchedwith43foundingmembers,whocommittedtoachievingnet-zeroemissionsintheirlendingandinvestingactivitiesby2050.Sincethen,theAlliance’smembershiphasnearlytripledasthebank-ingsectorseekstofulfilitscriticalroleinaddressingtheneedforclimateaction.Thetaskthatwe’vesetforourselves—todecarbonisetheglobalbankingsector—isbothcriticalandambitious.Theimpactofclimatechangeontheplanetfollowingdecadesofuncheckedemissionsismanifestingitselfinmanywaysandtheneedforactionisurgent.Weknowthatdecarbonisationrequireschangeintherealeconomy,butthatbanksarecrucialtoenablethatchange,byprovidingfinancetosupportclientsandcountriestotransitiontoanewlowcarboneconomy.And,inmanyways,weareallinunchartedterritory,refashioningthetoolsofourtradetoaddressthemonumentaltaskathand:newmethodologiesmustbedeveloped,newriskmodelsbuilt,newopportunitiesmustbescaledandcaptured,newcapacitiesbuiltandexpanded.Thechallengesindoingthisaremany.Therearesignificantgapsintheavailabilityandconsistencyofclimatedata—particularlyintheemergingmarketsordevelopingcoun-triesthataremostinneedoffinancetosupporttransition.Theregulatoryandpolicyframeworkisfastevolvingbutisnotyetcomprehensiveorconsistentandshockstotheglobaleconomy—throughinflation,war,disruptedsupplychainsandpandemicrecov-ery—arethreateningtheglobalconsensusontheneedforurgentaction.2022ProgressReportviContents|ForewordsEvenastheAllianceworkstodrivechangeinthebankingsector,wearealsooperatingalongsidepartnersfromacrosstheeconomicandpoliticalspectrumsthatarelikewiseseekingtorapidlycreateandscalenewtoolsandtrajectories.Thiscollaborationiscrit-ical,asfindingsolutionstotheclimatecrisisrequiresa‘wholesystem’approachwhereeveryoneplaystheirpart.Ourgoalisincrediblyambitious,andwecannotaffordtofail.Thecrisisdemandsaction;whichiswhy,onbehalfoftheAlliance’sSteeringGroupandour122globalbankingmembers,IamproudtopresentthisfirstProgressReport.ThisreportprovidesdetailsofhowtheAlliancemembersareprogressingtheircommitmenttonetzero.Itcapturestheearlyprogressmadebyourfoundingmembersinsettingintermediatenet-zerotargetsforprioritysectorsanddetailstheareaswearecoveringinourWorkTrackstohelpsupportmembersastheyundertakerobusttargetsetting.Thereportalsoillustrateshowweareworkingwithpartnersandorganisationsacrosstheglobetocreateamoresupportiveenvironmentforchange.Thereismuchtobeproudofinthisreport.Atthesametime,italsohighlightsthemanyobstacleswehaveyettoovercome.Weareencouragedbytheprogresswehavemadeandtheopportunitythispresentsforthesectortomakearealcontributiontotack-lingthischallenge.Whilethisreportheraldsthebeginningsofprogress,however,werecognisethatthereismuchmorethatourmembersmustachieve,andnewheightstowhichtheymustaspire.Aswecelebratethereleaseofthisreportandalltheprogressitcaptures,welookforwardtonextyearwithdedicationandurgency.2022ProgressReportviiContents|ForewordsEricUsherHeadUNEPFinanceInitiativeClimatechangeisoneofthegreatestchallengesofourtime;anexistentialriskanda‘code-redforhumanity’thatrequiresurgentsolutions.Thisracetorapidlydecarbon-isehumansociety,totransformoursourcesanduseofenergyandeliminategreen-housegasemittingactivities,isprovingincrediblychallengingandwillrequirethecoordinatedeffortofdiverseactorsacrossmostindustries.Itwillalsorequirefinanc-ing—immenseamountsofit.AttheUnitedNationsEnvironmentProgrammeFinanceInitiative(UNEPFI),we’velongrecognisedtheroleofthefinancialsectorinsecuringalow-carbonfuture.Ourpurpose—tocatalyseactionacrosstheglobalfinancialsystemtoaligneconomieswithsustainabilitygoals—hasledtothecreationofgroundbreakinginternationalframeworksandsub-sectoralliancesthatareseekinganewparadigmforfinanceinthe21stcentury.Continuinginthispattern,IampleasedtointroducealongwithTraceythefirstProgressReportoftheNet-ZeroBankingAlliance,whichcapturesanothercriticalstepinthetran-sitionoftheglobalfinancialsystem.TheNZBAwaslaunchedinApril2021,offeringthefirstandonlygloballyconsistentnet-zerostandardandambitionforthebankingindustry.TheNZBAisindustry-ledandUN-convened,bringingtogetherfirstmoversamongstthebankingindustrywiththeUNagencythathasestablishedsomeofthemostimportantsustainablefinanceframeworksglobally,includingtheUNPrinciplesforResponsibleBanking.Asevidencedinthisreport,theNZBAispositionedtoallowthebankingindus-trytotakeurgent,collective,andnear-termactionatagloballevel.Throughtheeffortsofitsindustry-ledworktracks,theAllianceisclarifyingtheinterpretationofwhat‘netzero’meansforthebankingsector,supportingtheapplicationofsectoraldecarbonisationpathways,buildingrecommendationsfortargetsettingandimplementation,andpursu-inggreaterrepresentationfromthebankingindustryallaroundtheglobe.Alongwithitssisternet-zeroalliances,theresponsiblefinanceinitiativesatUNEPFI,anditsotherpartnersintheGlasgowFinancialAllianceforNetZero,theNZBAispursuingavisionforthefutureoffinanceanditsroleincreatingahealthierplanetandamoresustainablehumansociety.2022ProgressReportviiiContents|ForewordsThisprogressseenduringtheAlliance’sfirst18monthsisencouragingandwillonlymultiplyasmorememberssetandstarttodeliverontheirintermediatetargetsinthecomingmonthsandyears.Butnowisnotthetimetorestonourlaurels.Evenasmembersclearthefirsthurdleofcarbonaccountingandtargetsetting,wemustlooktothehugelycomplextasksaheadofusandbendthatrecalcitrantglobalemissionscurvedownwardsbothconsistentlyandsteeply.Wemustmovefrompledgetoactionandbringthevisionofarealeconomytransformationintobeing.Thebankingsectorhasanintegralroletoplay,andthroughNZBAweareseeingtheearlyseedsofamuchwiderindustrymobilisation.Ourworkhasonlyjustbegun.2022ProgressReportixContents|ForewordsExecutivesummaryTheindustry-led,UN-convenedNet-ZeroBankingAlliancebringstogetherbanksworld-wide,whicharecommittedtoaligningtheirlendingandinvestmentportfolioswithnet-zeroemissionsby2050.TheAllianceisthefirstandonlynet-zerocommitmentandforumforbanksworldwideandistheclimate-focussedacceleratorinitiativeofthePrinciplesforResponsibleBanking.ItisalsothebankingelementoftheGlasgowFinancialAllianceforNetZero.Asperthemembers’CommitmentStatementandtheaccompanyingGuidelinesforClimateTargetSettingforBanks,thefoundingmembershad18monthsfromjoiningtheAlliancetoformulateanddeclaretheirfirstsetofintermediatedecarbonisationtargetsintheirpriority(mostimpactful)sectors.Thesetargetsmustbeachievedby2030atthelatest.Asperthecommitment,targetsareexpectedto:PrioritisesectorsbasedonGHGemissions,GHGintensities,and/orfinancialexposureinthebankingmember’sportfolioAlignwithno/low-overshoot1.5°Ctransitionpathways,asspecifiedbycrediblescience-basedclimatescenarios.TheNZBASecretariatfacilitatesthecollectionandreviewoftheprogressmadebymembersinimplementingtheircommitment.Aspartofthecommitment,Alliancemembersagreetopubliclydisclosetheirintermediatetargets.Theymustalsoreportannuallyontheirprogresstowardsachievingthesetargets.ThisinauguralProgressReportcapturesanaggregatedviewoftheintermediatetargetsthathavebeenreportedbymembers,inaccordancewiththe18-monthdead-linespecifiedinthecommitmentandinalignmentwiththeGuidelines.Thisreportaimstohighlightearlyindicationsofprogressandfutureareasoffocusasbanksimplementtheircommitments.Italsoaddressesthechallengesfacedbythemembersinmeetingtheircommitmentsandoutlinesrecommendedactionsfromregulators,policymakersandotherimportantstakeholdersthatwouldsupportthebankingsectorinfacilitatingthenet-zerotransitionoftherealeconomy.Noteondatausedforthisreport:BecausetheNZBAinductsmembersonaroll-ingbasis,itiscriticaltonotethatthisreportcapturesamoment-in-timeviewoftargetssetandmayexcludesomemembers’targetsbecauseofpublicationtimelines.Therefore,itcannotbeassumedthatamemberisinbreachoftheircommitmentiftheirtargetsarenotpresentedwithinthisreport.Foranup-to-datelistingofmembers’targets,includingthosewhowereunabletosubmitintimeforthisreport,pleaserefertotheAlliance’swebsite.2022ProgressReport xContents|ExecutivesummaryTheNZBASecretariat’s2022analysisofthesubmittedtargetsandassociatedtransi-tionplansyieldthefollowinginsights:Ingeneral,membershavedeliveredtheircommitmentsontime:90%ofmemberbankswhichwereduetosubmittargets(deadlineof21October)hadpublishedtargetsbytheendofOctober;linkstothesetargetsareprovidedintheAnnex.Ambitiousactionhasbeentakenbysomemembers:19membershavesettheirfirsttargetsinadvanceoftheir18-monthdeadline.Mostbankshavefocusedonhigh-emittingandhard-to-abatesectors:Over90%ofrespondingmembersreporthavingasectoralpolicyoncoaland/oroilandgasfinancing,andhavesetanemissionsreductiontargetinone,orbothofthosesectors.Giventheimportanceandthecomplexityofdecarbonisingthepowergener-ation,oil,andgassectorsandthetremendousamountofworkrequiredindoingso,itisnotablethatmanybankshavechosentoprioritisesettingtargetsforthesesectors,acceleratingthetimingandpaceofdecarbonisationwithinthesector.Intermediatetargetshavebeenset,butactionmustbeaccelerated.Onaverage,membersthatsubmittedby1stSeptemberhavesetintermediatetargetsinjustunderthreesectorsoutofthenineclimate-intensivesectorslistedintheGuide-lines.Itisunlikelythatthissmallnumberofsectorscoversthesignificantmajorityofemissions.Aspartofthecommitment,actionmustthereforebeacceleratedtoensureintermediatetargetsaresetwithin36monthsafterjoiningwhichcoverall,orasubstantialmajorityof,bankattributableemissionsacrossallsectors(wheredataandmethodologiesallow).Overall,theNZBAreinforces,accelerates,andsupportstheimplementationofdecar-bonisationstrategies,providingacoherentframeworktoenableimpactfulactiononclimatebythebankingsector.Theanalysisoftargetsinthisreportservesasavaluablelearningopportunity,bothforAlliancemembersandforthebankingsectoratlarge.ThestructureoftheNZBA’sgovernanceandworkprogrammepromotespeerlearning,thoughtleadershipandsupporttoimplementandpromotebestpractice.Detailsoftheseeffortsarecapturedinthesubsequentsectionsofthisreport.Inordertobuildontheprogressalreadymade,membersoftheAllianceandtheAlli-anceSecretariatitselfwillbecarryingoutthefollowingactions:Morememberswillbedeclaringtheir2030decarbonisationtargets:Overthecomingyear,themembersthatjoinedtheNZBAafterApril2021willalsobedeclar-ingtheirfirstsetof2030decarbonisationtargets.Togetherwiththeanalysisofthisreport,theseadditionaltargetswillprovideanincreasinglycompletemapoftheviableroutesthatAlliancemembersarechartingtowardsnetzero.NewtargetsfollowingthepublicationofthisreportwillbesharedontheNZBAwebsiteastheybecomeavailable.2022ProgressReport xiContents|ExecutivesummaryAdditionaldecarbonisationtargetswillbedevelopedforsectorswithinthenext18months:Aftersettingtheirintermediatetargetsforprioritysectors,memberswillsetasecondroundoftargetsbythe36-monthmark,providingasetofdecarbon-isationtargetsforallorasubstantialmajorityoftheninesectorsspecifiedintheGuidelines.1Intermediatetargetsmustbeachievedby2030atthelatest,andmustcoverasignificantmajorityofthetotalfinancedemissions.TheAlliancerecognisestheroleofabroadergroupofstakeholdersincreatingthefundamentalconditionsrequiredforaglobaltransitiontonet-zeroemissions.Alliancemembersurgentlycallongovernments,centralbanks,andbusinessestotakealead-ershiproleandsimilarlycommittotheParisAgreement’sambitionof1.5°C:TheAlliancecallsongovernmentstotakealeadershippositiononthenet-zerotransition,supportingindividuals,corporates,andorganisations,alongsideprivatefinance.TheAlliancelookstocentralbanksandsupervisorstoalignonconsistentframe-worksandmethodologiestocoordinatethenet-zerotransitionglobally.TheAlliancecallsonbusinesstofosterinnovativetechnologicaldevelopmentandpursueandscalenewproductsandservicesthatsupportthenet-zerotransition.TheAlliancealsocallsuponcivilsocietyandresearchinstitutionstoprovideconstructivefeedbackonproposedframeworks,accuratelyassessprogressandinvestigatenewareasforimprovement.TheAllianceurgeseconomicactorstobetransparentintheiractionsandtosharedatainordertoadvancetheaccuracyandcoverageofcarbonaccounting.TheAlliancepledgestoengagewithstakeholderstosupporttheseendeavours.Togetherwecanbuildafuturethatmeetschallengeswithcreativity,compassion,andperseveranceandthatprotectsthelivesandlivelihoodsofbothcurrentandfuturecommunitiesandecosystemsaroundtheworld.TheGuidelinesspecifyninecarbon-intensivesectors,forwhichallorasubstantialmajoritymusthavetargetsset(wheredataandmethodologiesallow):agriculture;aluminium;cement;coal;commercialandresidentialrealestate;ironandsteel;oilandgas;powergeneration;andtransport.SignatoriesshouldprioritisesectorsbasedonGHGemissions,GHGintensitiesand/orfinancialexposureintheirportfoliointheirfirstroundoftargetsetting(within18monthsofsigning).Notwithstandingmethodologicallimitations,theremainingcarbon-intensivesectorsfromthislist(orasubstantialmajoritythereof)shallbeincludedinsubsequentroundsoftargetsetting(within36monthsofsigning).2022ProgressReport xiiContents|ExecutivesummaryIntroductionAbouttheNet-ZeroBankingAllianceTheindustry-led,UN-convenedNet-ZeroBankingAlliancebringstogetherbanksworld-wide,whicharecommittedtoaligningtheirlendingandinvestmentportfolioswithnet-zeroemissionsby2050.TheAlliancewaslaunchedby43FoundingMemberson21April2021andinitsfirst18monthshasgrowntomorethan120banks,representingalmost40%ofglobalbankingassets.Combiningnear-termactionwithaccountability,theambitiouscommitmentsrequiresignatorybankstosetintermediatenet-zerotargets,forachievementby2030(orsooner)and2050,nolaterthan18monthsafterjoining.TheAllianceisconvenedbytheUNEnvironmentProgrammeFinanceInitiative(UNEPFI).Inaddition,theAlliancecoordinateswithothersub-sectorfinancialalliancesasthebankingelementoftheGlasgowFinancialAllianceforNetZero.Italsoservesastheclimate-focusedacceleratorofthePrinciplesforResponsibleBanking.TheAllianceaimstoreinforce,accelerate,andsupporttheimplementationofdecarboni-sationstrategies,providinganinternationallycoherentframeworkandguidelinesinwhichtooperate,supportedbypeer-learningfrompioneeringbanks.Itrecognisesthevitalroleofbanksinsupportingtheglobaltransitionoftherealeconomytonet-zeroemissions.ThecommitmentofAlliancemembersThecentralcommitmentoftheAllianceitselfisrobust,ambitiousandsciencebased.Inadditiontotargetingnetzeroby2050,thecommitmentspecifiesatemperatureoutcomeconsistentwithlimitingglobalwarmingto1.5°Cfrompre-industriallevels,inlinewiththemostambitiousobjectiveoftheParisAgreement.Usingthebestavailablescientificknowledge,includingthefindingsoftheIntergovernmentalPanelonClimateChange(IPCC),thecommitmentspecifiesthattargetsshouldbesetinlinewith1.5°Clow/noovershootscenarios—thatis,climatetrajectoriesthatcomplywiththeIPCC’sdefinitionofa1.5°Cpathway.Thecommitmentaddressesbothabsoluteemissionsandemissionsintensityinitsannualreportingrequirement,providingahighleveloftransparency,andtakesanall-economyapproachbycoveringninecarbon-intensiveandhigh-emittingsectors.2022ProgressReport1Contents|IntroductionInjoiningtheAlliance,signatorybankshavecommittedto:TransitiontheoperationalandattributableGHGemissionsfromtheirlendingandinvestmentportfoliostoalignwithpathwaystonetzeroby2050orsooner.Setfirst2030targets(orsooner)anda2050targetwithin18monthsofjoining,aswellasintermediatetargetseveryfiveyearsfrom2030onwards.Alltargetswillberegularlyreviewedtoensureconsistencywiththelatestscience(asdetailedinIPCCassessmentreports).PrioritisesectorsbasedonGHGemissions,GHGintensitiesand/orfinancialexposureintheirportfoliointheirfirstroundoftargetsetting(within18monthsofsigning).Setafurtherroundofsector-leveltargetswithin36monthsofjoiningforallorasignificantmajorityofspecifiedcarbon-intensivesectors,including:agriculture;aluminium;cement;coal;commercialandresidentialrealestate;ironandsteel;oilandgas;powergeneration;transport.Engagewiththeirclients’owntransitionanddecarbonisationtopromoterealecon-omytransitionratherthanonlyportfoliodecarbonisation.Annuallypublishabsoluteemissionsandemissionsintensityinlinewithbestpracticeand,withinayearofsettingtargets,discloseprogressagainstaboard-levelreviewedtransitionstrategysettingoutproposedactionsandclimate-relatedsectoralpolicies.Takearobustapproachtotheroleofoffsetsintransitionplans.2022ProgressReport2Contents|IntroductionIntermediatetargetsMethodologyandlimitationsInformationaboutmembers’intermediatetargets(thatis,sectoraldecarbonisationtargetsforachievementby2030orearlier)wassolicitedviaasurvey,circulated1June2022.Thecut-offdateforinclusioninthisreportwas1September2022.Members’targetsandtheinformationsubmittedareexpectedtoadheretotheparametersoutlinedintheGuidelinesforClimateTargetSettingforBanks.2BecausetheNZBAinductsmembersonarollingbasis,itiscriticaltonotethatthisreportcapturesamoment-in-timeviewoftargetssetandmayexcludesomemembers’targetsbecauseofpublicationtimelines.Therefore,itcannotbeassumedthatamemberisinbreachofitscommitmentifitstargetsarenotpresentedwithinthisreport.Foranup-to-datelistingofmembers’targets,includingthosewhowereunabletosubmitintimeforthisreport,pleaserefertotheAlliance’sHYPERLINK"/net-zero-