CLIMATE TRANSITION Looking Ahead: Climate Change and Biodiversity The climate challenge is complex and will require transformative change across our economy to both mitigate further global warming and establish measures to protect the most vulnerable from the impacts we’re already seeing. Our interim roadmap for net zero and 2030 sectoral targets are a key step forward in our journey to align our 昀椀nancing portfolio to a net zero pathway by 2050. Our initial focus is on building our infrastructure to increase e昀케ciency and scalability of carbon intensity analysis to support our clients’ decarbonization e昀昀orts. Over time, we plan to further embed these targets into our business practices and risk management framework — and expand our target-setting framework to include additional sectors that are important to our 昀椀nancing portfolio. As we look forward, our climate commitment extends beyond our long-term net zero pledge. Biodiversity is just one area where we see growing interest from clients, investors, and broader stakeholders from both a risk and opportunity perspective. Forests are critical for the environment and provide livelihoods for people across the world. They also act as carbon sinks, sequestering carbon dioxide from the atmosphere. Deforestation and degradation of forests remain signi昀椀cant challenges in many regions — and both are major contributors to greenhouse gas emissions. In addition, the ocean constitutes the vast majority of habitable space on our planet and contains a signi昀椀cant portion of the world’s biodiversity. The ocean is critical to the functioning of our planet, as this natural resource absorbs carbon dioxide emissions from the atmosphere. Ocean biodiversity is also a crucial source of income for many communities around the world, and the e昀昀ects of climate change on ocean biodiversity will have economic impacts around the world. Sustainability Report 2021 Climate Transition | Looking Ahead 46