Summary
Details
- Global
The Pegasus Guidelines may be used by any financial institution that lends to commercial aviation lessors or airlines to measure and report on the climate alignment of its aviation lending portfolio.
Deep dive
📩 Stay ahead of climate regulation and reporting shifts
Regulatory updates, reporting standards, and new climate software — distilled into one concise weekly brief for decision-makers.
Thanks for signing up. Please check your inbox to confirm your subscription.
Practical updates. Once per week.
Overview
The Pegasus Guidelines were introduced in 2024 as a sector-specific methodology for aviation finance, addressing the need for consistent climate alignment assessment in a high-emitting and hard-to-abate sector. They are designed for financial institutions that provide lending to airlines and aircraft lessors. By applying the framework, these institutions can evaluate how the emissions performance of their portfolios compares to climate-aligned pathways and better understand their exposure to transition risks. The development of the guidelines involved a working group of major international banks and broader consultation with industry stakeholders. The initiative builds on earlier climate-aligned finance approaches in other sectors and is intended to support alignment with broader frameworks such as the Net-Zero Banking Alliance.
Reporting Requirements
The Pegasus Guidelines define a structured process for measuring and disclosing aviation portfolio performance, covering both emissions intensity and climate alignment. Participating institutions are expected to follow a consistent methodology that includes identifying relevant financings, gathering appropriate operational and emissions data, calculating emissions intensity for each exposure, and aggregating results to produce portfolio-level metrics. The framework is built around three core elements:
Standardised measurement - Institutions assess their aviation portfolios on a recurring basis using a defined methodology. This includes calculating emissions intensity for individual financings and determining overall portfolio alignment, typically expressed through a metric such as a Portfolio Alignment Score.
Consistent data sourcing - Users should prioritise primary data obtained directly from clients. Where this is not available, they may rely on recognised third-party data providers. The framework promotes transparency around data inputs and encourages the inclusion of data-sharing provisions in financing agreements.
Annual disclosure - Institutions disclose results on a yearly basis. This generally includes emissions intensity and/or alignment metrics, key assumptions used in calculations, and confirmation that the Pegasus Guidelines have been applied. Additional narrative context may be included to explain results.
Current status
The Pegasus Guidelines are an open, voluntary framework with no formal membership or sign-on requirement. Financial institutions can adopt the methodology independently and disclose results at their discretion. Since their launch in 2024, the guidelines have been adopted or tested by several global banks, with further uptake expected as demand for sector-specific climate alignment tools increases. The framework is expected to evolve over time, particularly as data availability improves and aviation decarbonisation pathways—such as those linked to sustainable aviation fuels and new propulsion technologies—become more clearly defined.
Resources
Cut through the green tape
We don't push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information. Why you seek it is not our concern.