A robust phase-out strategy for financial institutions involves phasing out all types of exposure in thermal coal mining and coal power by 2040, with an interim target of 2030 for Europe/OECD. Furthermore, additional commitments must be made immediately, such as excluding all companies with coal expansion plans.
In the near term (gradual escalation between 2024 and 2026), companies without exit plans aligned with the above-mentioned deadlines and lacking a detailed asset-by-asset closure plan should progressively be excluded. Other criteria resulting in progressive exclusion include planning to convert coal plants to gas and/or biomass, intending to sell (rather than closing) the assets, and not planning a sustainable transition plan for workers, local communities and the environment.