Financial institutions face challenges in assessing corporate transition planning due to the lack of regional context in climate targets and decarbonization strategies. Regionalization strengthens assessments by revealing asset-level exposure, enhancing performance accuracy through benchmarking, and uncovering opportunities in underserved regions. The paper explores three key areas for regionalization: leveraging regional pathways to contextualize targets and identify dependencies, evaluating critical dependencies, and closing the data divide using alternative data sources. It suggests a tiered, risk-based approach to prioritize companies and assessment components, emphasizing the need for collaboration among stakeholders to build a credible and scalable system for regionalized assessments.
