Fig. 4: Phasing-out banks in order of importance increases phase-out efficiency.

a Total relative efficiency as a function of the percentage of banks which have phased-out from the fossil fuel sector. Targeted removal of banks (red dashed) reduces the number of banks which must be phased-out to achieve non-zero efficiency, relative to the random case (grey dotted). For illustrative purposes, both scenarios use a finance limit of 100%. b The equivalent to a, but as a function of the total capital phased out directly by banks. c The efficiency gap for various different finance limit percentages. For a fixed limit, the efficiency gap is smaller for targeted phase-out (red points) than random phase-out (grey crosses). d The tipping point, defined as the percentage of phased-out banks required to reach a total relative efficiency of 0.5. All panels show the median value from 100 simulations for each model. Shaded regions correspond to the inter-quartile range across the 100 simulations.