Net-zero for financial institutions

We’ve launched a transparent, inclusive process to develop the first science-based global standard for financial sector net-zero targets. This will enable financial institutions to set net-zero targets that are consistent with achieving a net-zero world by 2050.



Foundations for Science-Based Net-Zero Target Setting in the Financial Sector

Net-zero commitments in the financial sector are increasing. At COP26, financial institutions with more than US$130 trillion in assets under management committed to reaching a state of net-zero before 2050.

However, there is currently a lack of standardization to evaluate and validate these pledges. This limits the ability of financial institutions to drive the decarbonization of the real economy needed to stabilize temperatures at 1.5°C above pre-industrial levels.

The SBTi’s Net-Zero Standard for financial institutions will bring the clarity and scientific basis the sector needs to achieve net-zero by 2050.


Aims of the SBTi Finance Net-Zero Standard development process

Our development process aims to:

  • Define the basis of a target-setting standard that enables financial institutions to use their influence to achieve economy-wide net-zero emissions by 2050
  • Provide clarity on key concepts, such as what it means to reach net-zero for a financial institution, transition metrics, and the components of credible science-based net-zero targets
  • Establish a clear net-zero standard for financial institutions - including recommendations and qualitative and quantitative criteria to assess financial net-zero targets - through a transparent and inclusive multi-stakeholder engagement process





Public Consultation Feedback Summary on the Net-Zero for Financial Institutions Foundations

The Foundations for Science-Based Net-Zero Target Setting in the Financial Sector paper represents the first step in developing a science-based, net-zero standard for financial institutions. It sets out principles, definitions, metrics, and target formulation considerations for financial institutions to set quantitative net-zero targets linked with emissions reductions in the real economy.

The SBTi is building on this paper through a transparent, inclusive multi-stakeholder process involving financial institutions, NGOs, government officials, and other interested parties.

A public consultation on a draft of the paper was conducted between November 2021 and January 2022. Feedback was gathered from over 250 individuals in public workshops as well as 130 responses from an online survey.

View the Feedback Summary here.

Watch a recording of the consultation launch event.

Governance and oversight

The SBTi is establishing a dedicated Financial Net-Zero Expert Advisory Group (EAG) to guide the development process.

The members of the Expert Advisory Group are:

  • Adrian Chapman, Head of Group Climate ALM, Legal & General
  • Adrian Fenton, Senior Programme Manager, Institutional Investors Group on Climate Change
  • Adriana Kocornik-Mina, Metrics and Research Senior Manager, Global Alliance for Banking on Values
  • Alberto Gervasini, Terra Lead, ING
  • Alex MacGillivray, Co-Chair, Joint Impact Model stichting
  • Alexandra Paltschik Rønneberg, Advisor, Corporate Responsibility, KLP
  • Amita Chaudhury, Group Head of Sustainability, AIA Group
  • Andrea Corsi, Vice President, ESG Risk, Deutsche Bank
  • Andrew Howell, Director, Investor Influence, Environmental Defense Fund
  • Andrew Hutchison, Director, Net Zero Strategy, Credit Suisse International
  • Anindita Pal, Director, Baringa Partners
  • Anne de Clermont, Head of Group Investment Monitoring, Axa Group
  • Caroline Clarke, Director of Financial Services, Carbon Intelligence
  • Christine Mwangi, Africa Sustainable Investments and Infrastructure (ASI), WWF Kenya
  • Eric Christensen, Vice President, Sustainability, Energy and Climate Change, WSP USA
  • Flora Min, Senior Manager, Deloitte
  • Franco Piza, Corporate Director of Sustainability, Bancolombia Group
  • Gauthier Faure, Senior Research Manager, Sustainable Finance, EcoAct
  • Gustav Magnusson, Manager, Group Sustainability, EQT
  • Ian Edwards, Industry Fellow, Griffith University
  • Jan Willem van Gelder, Director , Profundo
  • Jean-Yves Wilmotte, Head of Finance Practice, Carbone 4
  • Jesica Andrews, Investment Lead, UNEP FI
  • Joy Williams, Executive Director, Financial Institution Net-zero Transition Plans, GFANZ
  • Julia Bingler, Fellow - Monetary Policy, Council on Economic Policies
  • Julien Manceaux, Senior Manager, Decarbonization Strategy Sustainability & Corporate Citizenship, TD Bank Group
  • Katharina Dittrich, Associate Professor, Warwick Business School
  • Kees Ouboter, Senior Responsible Investment Officer, ACTIAM
  • Kerry Constabile, Net Zero and Sustainability Strategy Delivery, Standard Chartered Bank
  • Lars Erik Mangset, Head of Sustainable Finance, Grieg Investor
  • Leyla Javadova, Lead for ESG Data and Analytics in Investments, Allianz
  • Lucy McCracken, Senior Manager – Climate, Public Affairs, Aviva
  • Marcus Bruns, SVP, Nordic Head of Sustainability, Storebrand
  • Minyoung Shin, Senior Strategist, Global Sustainable Finance, The Sunrise Project
  • Mischa Repmann, Senior Sustainability Risk Manager, Swiss Re
  • Nicole Röttmer, Partner, Climate Leader, PwC
  • Patricia Moles , Senior Advisor, Iniciativa Climática de México
  • Paul Greenop, Head of Portfolio Management, Clean Energy Finance Corporation
  • Paul Schreiber, Campaigner, Reclaim Finance
  • Peter Sandahl, Head of Sustainability, Nordea Life & Pension
  • Raphael Slade, Senior Research Fellow, Imperial College
  • Richard Cantor, Vice Chair, Moody's Investor Service
  • Serge Younes, Head of Sustainability, InvestIndustrial
  • Shu Ling Liauw, Lead Analyst, Global Climate Insights
  • Simone Kramer, Director, Data Strategy, GFANZ
  • Skender Sahiti-Manzoni, Head of Sustainable Commitments & Stakeholder Engagement, La Banque Postale
  • Sofía Burford Arauetes, Climate Strategy Leader, ImplementaSur
  • Sylvain Vanston, MSCI Climate Research, MSCI ESG
  • Xavier Lerin, Senior Research Manager, ShareAction

Provisional development timeline

An outline of the development process is set out below. A more detailed timeline will follow soon.

  1. Nov-Dec 2021: Consultation on Net-Zero for Financial Institutions Foundations Draft
  2. Jan-Mar 2022: Finalization of Net-Zero for Financial Institutions Foundations
  3. Jan-Mar 2023: Launch of final Financial Net-Zero Standard

Resources

Contact

For queries relating to the development process, please contact [email protected]