The Science Based Targets initiative, together with 2 Degree Investing Initiative and Ecofys, is developing methods frameworks and implementation guidelines for financial institutions to set targets. The aim of this project is to develop a harmonized framework, for financial institutions to set climate targets for their investing and lending portfolios in line with the Paris Agreement.
The ultimate objective of science-based targets for this sector is to maximize their enabling potential to transform towards a low-carbon society. This will help to avoid catastrophic climate change and will reduce any individual financial institution’s exposure to the potential threat of a carbon bubble or any other climate-related risk.
The deliverables of this project will be:
1) An overarching report consisted of two parts:
Part A: Description of the framework including detailed description of the methods for maximum 5 asset classes to align the climate target of any nancial institution with the Paris Agreement.
Part B: Guidance for FIs to use this framework with practical examples of FIs that have applied the associated methods on real case studies.
2) A Separate executive summary describing this methodology.
Unfortunately the Science Based Targets Initiative cannot offer validation of emissions reductions targets from financial sector companies until this sector development work is completed. In the interim we encourage companies to submit commitment letters to indicate their intention to set targets in line with science.