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 has been 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. In addition, the relatively slow progress (compared to the corporate sector) being made by the financial services industry post-COP26 to overcome competitive and regulatory hurdles and align itself with a 1.5°C pathway, evidenced by any clear, strategic progress having been made within the FI space at COP27, shows the effort is lacking direction and urgency.

The SBTi’s Net-Zero Standard for financial institutions is intended to move this process forward and provide the clarity and scientific basis the sector needs to achieve net-zero in its target-setting 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 financial institution net-zero (FINZ) Standard - including recommendations and qualitative and quantitative criteria to assess financial net-zero targets - through a transparent and inclusive multi-stakeholder engagement process

Foundations Paper and 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 was published in April 2022. After a rigorous public consultation involving feedback from over 250 individuals in public workshops as well as 130 responses from an online survey, it represented 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 continually building on this paper through a transparent, inclusive multi-stakeholder process involving financial institutions, NGOs, government officials, and other interested parties.

Governance and oversight

Subsequent to the public consultation and Foundations paper publication, the SBTi established 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, PhD, 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, CFA, Director, Investor Influence, Environmental Defense Fund
  • Andrew Hutchison, Director, Net Zero Strategy, Credit Suisse International
  • Anindita Pal, Partner, Sustainable Finance Transformation, EY Financial Services
  • Caroline Clarke, MD Sustainability Services Hub (FS), Accenture
  • Christine Mwangi, CFA, Africa Sustainable Investments and Infrastructure (ASI), WWF Kenya
  • Cynthia Cummis, Sustainability and Climate Expert Leader, Deloitte
  • 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
  • Jane Thorstrup Jagd, Deputy Director, Net Zero Finance, We Mean Business Coalition
  • 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, PhD, 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, PhD, Senior Sustainability Risk Manager, Swiss Re
  • Nicole Röttmer, PhD, 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, PhD, Head of Sustainability, InvestIndustrial
  • Shu Ling Liauw, Lead Analyst, Global Climate Insights
  • 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

Development timeline

An outline of the provisional development process through the first half of 2023 is set out below.

  1. April 2022: Publication of the Foundations for Science-Based Net-Zero Target Setting in the Financial Sector paper
  2. June - August 2022: Finalization of the SBTi FI Net-Zero Expert Advisory Group
  3. August - Decembe 2022: Preparation of papers on key pillars of a FINZ Standard
  4. January - March 2023: development of Criteria and Metacriteria (in consultation with EAG and advisors at Bain & Co.), with subsequent road-testing among selected FIs, NGOs and other interested parties
  5. March - April 2023: internal SBTi and stakeholder approval of FINZ Standard
  6. Post-April 2023: publication of Exposure Draft
  7. Q2 - Q4 2023: further public consultation via webinars, workshops and further road-testing, plus drafting of other aspects/pillars required for a comprehensive FINZ Standard
  8. Q4 2023 - early 2024: Launch of Financial Institution Net-Zero Standard


For queries relating to the development process, please contact