Transition Plans in the Financial Sector

Net zero transition plans are set to become a key part of the pathway to implementing the Paris Agreement goal of limiting global warming. They are also emerging as the key forward-looking instrument for banks and their supervisors to capture, manage and mitigate transition risks. Just as governments need detailed plans to show how they will deliver their net zero targets, corporations and financial institutions need to inform stakeholders how they plan to adapt their business model to a rapidly changing environment and mitigate transition risks. In the EU, transition plans are being introduced as mandatory requirements both as part of the corporate disclosure regime and prudential framework (2023 reform of Capital Requirements Regulation and Directive). Several global initiatives shape the broader discussion on transition planning in the financial sector (GFANZ, NGFS, BCBS).

This FBF course on this novel policy area brings together eminent academics, policy-makers and practitioners to systematise the discussion around transition plans (TPs) for a broad audience in the financial and economic policy space. We will explore different types of bank transition plans, both those focused on alignment and risk-based, in the context of broader EU and sectoral policy goals. The interdisciplinary faculty will bring together regulatory and technical perspectives, particularly about the changing policy landscape, methodologies underlying the development and assessment of TPs, as well as sectoral transition insights. The course will include practical activities.