Our Services
Portfolio Target-Setting and Steering
The overarching goal is to redirect capital flows to sustainable activities (see, for example, the EU Sustainable Finance Action Plan), and in particular to contribute to the achievement of the Paris Climate Agreement. This implies a reorientation of financial institutions’ existing activities. To contribute to a Net Zero or a “well below 2 degrees” world, ambitious climate targets are required. Magnolia Consulting helps you to get an overview of the multitude of different initiatives (Science Based Targets Initiative, Net Zero Banking Alliance, Net Zero Asset Owner Alliance etc.) and supports you in choosing a target-setting method that suits your needs.
In order to achieve the defined targets, steering concepts are needed. Magnolia Consulting supports its clients with its expertise from a multitude of projects with key players in the financial industry.
Together with you we answer the following questions tailored to your institution:
- What am I still allowed to finance and until when?
- What investment decisions can my company make, in what form, and until when?
- What new business opportunities arise from the transition to a decarbonised economy?
- What steering options do I have?
Divestment is by no means the only, and often not the best, alternative to making a significant contribution to achieving the Paris Agreement.
Possible work packages:
- Detailed overview of the requirements of the different market initiatives
- Evaluation of best practice methods present in the market
- Mapping of your already existing efforts with the requirements from the initiatives and recommendation of a suitable method/mix of methods
- Calculation of (sector) targets
- Development of control concepts for target achievement and a corresponding implementation roadmap
- Concept for monitoring and steering that fits into existing processes