Transition plans are strategic roadmaps that outline how an organization aims to align its operations with a low-carbon, climate-resilient future. Beyond setting decarbonization targets, a credible, time-bound transition plan translates climate ambition into a decarbonization strategy (UNEP FI, 2023). These plans can yield benefits at various levels.

This document offers a methodological deep dive into how the Net Zero Finance Tracker (NZFT) assesses FIs’ progress in implementing their transition plans, by explaining how its indicators align with and map to existing transition plan frameworks.