29. For climate risks, the additional following factors should be considered: a. climate policies …

For climate risks, the additional following factors should be considered:

• a. climate policies, i.e. the level of policy intervention aimed at mitigating climate change or managing its impacts through adaptation policies; this can range from highly ambitious to minimal actions;
• b. energy systems, i.e. the structure of energy production, consumption, and infrastructure, including reliance on fossil fuels vs. renewable energy sources;
• c. sectoral pathways to net-zero emissions, i.e. how the different sectors transition and adapt to a sustainable economy, including, where relevant, the international outlook, such as the International Energy Agency (IEA), the Science Based Target initiative (SBTi)²⁸ or the Net Zero Banking Association (NZBA)²⁹ sectoral decarbonisation pathways, the FINAL REPORT ON GUIDELINES ON ENVIRONMENTAL SCENARIO ANALYSIS

regional context, foremost among which the European Green Deal strategy, the Fit-for-55 package, and the 2050 climate-neutrality target, and the national policies and climate strategy;

• d. emissions level and ensuing climate impact, i.e. concentration of greenhouse gases emissions and how temperature and other biophysical processes are expected to develop in the future.

²⁸ The SBTi is a global partnership (between CDP, the UN Global Compact, WRI, and WWF) that helps companies and financial institutions set greenhouse gas emission reduction targets that are aligned with the Paris Agreement goals (limiting warming to well below 2°C, and pursuing 1.5°C).

²⁹ The NZBA is a UN-convened, industry-led initiative launched in 2021 under the Glasgow Financial Alliance for Net Zero (GFANZ) that provides a common framework for banks to align their portfolios with net-zero emissions by 2050 through the adoption of sectoral targets.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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