By means of transition planning, financial institutions can align their business lending with their own transition pathways. 1/5  BIS - Central bankers' speeches  The benefits of net-zero transition plans are clear. What is less clear is "how" to create them. This is a point where further guidance and clarity is needed.
Market-led initiatives, such as the Glasgow Financial Alliance for Net Zero (GFANZ)2 or the Task Force on Climate-Related Financial Disclosures (TCFD)3 have already published frameworks on transition plans. Following the market-led initiatives, the public sector is moving, too. Regulators will expect the disclosure of transition plans in the future.