This report examines how financial institutions are establishing decarbonization targets specific to the aviation industry, which is characterized by persistent emissions growth and limited immediate options for emission reductions. It emphasizes methodological considerations such as the selection of appropriate benchmarks, scope of emissions, and measurement metrics, referencing frameworks like the Pegasus Guidelines.
The study highlights innovative market practices, including emissions intensity targets, and discusses critical strategies to support industry transition, notably fleet modernization and the adoption of sustainable aviation fuels. This guidance aims to assist banks in developing, refining, and implementing aviation-related climate strategies aligned with current data and methodology standards.
Market Practices and Transition Levers
Emerging practices utilize emissions intensity metrics to measure progress, with key transition levers identified as fleet modernization and sustainable aviation fuel adoption. These approaches reflect industry trends towards decarbonization and responsible investment.
"This practical guidance is intended to help banks develop, refine, and implement aviation-related transition strategies in line with evolving methodologies and data availability," said the report's authors.
By adopting these strategies, banks can contribute meaningfully toward industry-wide emission reductions while managing risk and supporting the shift towards sustainable aviation practices.
