CDPDISCLOSURE INSIGHT ACTIONCDP Technical Note:Financial Services TransitionPlans and Net Zero CommitmentsCDP Climate change QuestionnaireExecutive SummaryIn this technical note,we expand on CDP's existing research into credible climate transitionplans,by mapping additional disclosure indicators specifically for the financial sector.Our aimis not to create new frameworks but to complement existing guidance and reportingrequirements by aligning them with transition plan guidelines and frameworks produced forand by the sector.Additionally,we provide guidance on how financial institutions signatoriesto the Glasgow Financial Alliance for Net Zero(GFANZ)sector-specific alliances can disclosein line with their net zero commitments.The financial sector plays a critical role in facilitating the transition to a net zero economythrough its financing of real economy activities.To enable transparent and comparablebaselines for action,financial institutions must disclose how they are embeddingenvironmental considerations across their businesses.As the regulatory landscape rapidlyalso evolves,mandatory climate-related disclosures are being widely implemented,includinginformation on transition plans.CDP offers a TCFD-aligned climate change questionnaire specifically designed for financialinstitutions.This questionnaire incorporates science-aligned requirements,market needs,andtrends in corporate climate change reporting.It has evolved over time to accommodate variousframeworks such as the Investor Climate Action Plans (ICAPs)framework and net zerocommitments under the sector-specific alliances of GFANZMany financial institutions have committed to achieving net zero emissions through theGFANZ sector-specific alliances.These alliances require climate-related disclosures thatdemonstrate progress towards net zero.Transition plans have gained prominence as a meansto translate commitments into accountable action.Since 2022,several guidelines andframeworks for transition plans have been released for the financial sector by organizationssuch as GFANZ,the Investor Agenda,and the United Nations High-Level Expert Group onNet Zero Emissions Commitments of Non-State Entities.These have been mapped to theclimate change questionnaire for financial institutions and to the disclosure indicators of acredible climate transition plan for the sector.CDP remains committed to staying up to date with scientific requirements and participating inthe development of upcoming standards and regulatory requirements.The first iteration of thisFinancial Services technical note serves as the initial guide for financial institutions to connecttheir disclosures to the evolving landscape of net zero commitments and transition plans.Going forward,CDP plans to publish a detailed technical note that outlines the alignmentbetween its questionnaires and the UK Transition Plan Taskforce's disclosure framework.Page 2 of 29@cdp www.cdp.net