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A best practice guide to net zero planning for UK mortgage lenders

UK banks and lenders are under growing pressure to ensure they have a credible plan to get to net zero.

That means accurate baseline financed emission calculations, ambitious (but realistic) climate targets, and a robust action plan for decarbonisation activities to meet those climate targets.

It can be difficult to know where to start.

From ISSB to PCAF to TPT, there are lots of organisations out there with different guidelines and approaches to creating a transition plan for a financial institution – which can be confusing and overwhelming.

To help, we’ve put together a best practice guide to net zero planning for UK mortgage lenders.

It contains 7 essential steps specific to lenders that will give you a great starting point to ensure a credible net zero plan.

In brief, those 7 steps are:

  • Step 1: Identify data acquisition needs
  • Step 2: Close portfolio blind spots
  • Step 3: Use scenario analysis to set credible targets
  • Step 4: Stress test for accuracy
  • Step 5: Establish an accurate baseline for emissions calculations
  • Step 6: Assess actual customer needs to drive decarbonisation
  • Step 7: Align metrics with the ESG credentials investors need.

For more detail on each step download the guide.

Build a credible climate transition plan for your mortgage book. Download the guide.

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