Net-zero for financial institutions
Developing the world’s first Standard for science-based net-zero targets in the financial sector.
The SBTi is running a transparent, inclusive process to develop the first science-based, global Standard for financial sector net-zero targets. The goal is to enable financial institutions to set emission reduction targets that are consistent with achieving net-zero across their portfolios by 2050. The Financial Institutions Net-Zero (FINZ) standard is intended to complement and eventually replace the Financial Institutions Near-term Criteria, which were updated in May 2024.
Public consultation and pilot testing for the SBTi’s Draft Financial Institution Net-Zero Standard
On July 24, 2024, the SBTi published a Draft Financial Institution Net-Zero (FINZ) Standard for public consultation and pilot testing. This document builds on previous drafts and incorporates feedback from financial institutions and other stakeholders. Experts from the financial sector, academia and civil society across the globe provided feedback on the Draft FINZ Standard via the public consultation survey, which closed on October 11, 2024.
Submissions for the pilot test closed on August 9, 2024. Insights gathered from the public consultation and pilot will inform the development of the final version of the SBTi’s Financial Institution Net-Zero Standard, which is due to be published next year.
Although the consultation and submissions for pilot testing are closed, you can submit feedback to our Financial Institutions Team on the development of the FINZ Standard at any point in the process using our project feedback form.
Aims of the SBTi FI Net-Zero Standard development process
Our development process aims to:
- Define the basis of a target-setting standard that enables FIs to use their influence to achieve economy-wide net-zero emissions before 2050.
- Provide clarity on key concepts, such as what it means to reach net-zero for an FI, transition metrics and the components of credible science-based net-zero targets.
- Establish recommendations and qualitative and quantitative criteria to assess financial net-zero targets through a transparent and inclusive multi-stakeholder engagement process.
FI Net-Zero: Foundations Paper and Public Consultation Feedback Summary
The Foundations for Science-Based Net-Zero Target Setting in the Financial Sector paper was published in April 2022. It was developed following a rigorous public consultation involving feedback from over 250 individuals in public workshops and 130 responses from an online survey, and represented the first step in developing a science-based, FINZ Standard. It sets out principles, definitions, metrics and target formulation considerations for FIs to set quantitative net-zero targets linked with emissions reductions in the real economy.
In 2023, the SBTi released a FINZ Standard Conceptual Framework and Initial Criteria paper for a two-month transparent, multi-stakeholder public consultation.
The SBTi is now reviewing and assessing the feedback received and planning future activity with the aim of developing a FINZ Standard that will enable FIs to establish credible near- and long-term net-zero targets across their portfolios and operations.
Governance and oversight
The SBTi has established and regularly convenes a dedicated FINZ Expert Advisory Group (EAG). It plays an advisory and consultative role in developing the FINZ Standard and the current members are:
| Member | Organization |
|---|---|
| Adrian Chapman | Legal & General |
| Adrian Fenton | Institutional Investors Group on Climate Change |
| Alberto Gervasini | ING |
| Alex MacGillivray | Joint Impact Model Foundation |
| Alexandra Rønneberg | KLP |
| Amanda Selhammer | Storebrand |
| Andrew Hutchison | UBS (prev. Credit Suisse) |
| Angelica Afanador | PCAF - Partnership for Carbon Accounting Financials |
| Anindita Pal | EY |
| Benjamin McCarron | Asia Research & Engagement |
| Betsy Middleton | The Sunrise Project |
| Butch Bacani | United Nations Environment Programme |
| Caroline Clarke | Accenture |
| Christina Ng | Energy Shift Initiative |
| Connor Chung | The Institute for Energy Economics and Financial Analysis |
| Cynthia Cummis | Deloitte |
| Daan Van Acker | InfluenceMap |
| Duncan Lee | AIA |
| Franco Piza | Bancolombia |
| Gauthier Faure | Atos |
| Georgina Smit | Green Building Council South Africa (GBCSA) |
| Gustav Magnusson | Eqpartners |
| Harriet Assem | BVCA |
| Henrietta Stock | Aviva |
| Ian Edwards | Griffith |
| Jan Willem van Gelder | Profundo |
| Jane Thostrup Jagd | WMBC |
| Jesica Andrews | UN |
| Joy Williams | GFANZ |
| Julia Bingler | Council on Economic Policies |
| Justine Bolton | First Rand |
| Katharina Dittrich | WBS |
| Kerry Constabile | Oxford Environmental Change Institute (University of Oxford) |
| Lars Erik Mangset | Greig |
| Leonie Ederli Flickinger | WWF Germany |
| Lizeth Palencia | PRI |
| Luis Alejandro Mejia | IDB Invest |
| Mischa Repmann | Swiss Re |
| Neha Khanna | Climate Policy Initiative |
| Nils Bartsch | Urgewald |
| Patricia Moles | Instituto Tecnológico Autónomo de México |
| Paul Schreiber | Reclaim Finance |
| Peter Sandahl | Nordea |
| Rebecca Lea | Association of British Insurers |
| Richard Cantor | Moodys |
| Serge Younes | Investindustrial |
| Shuling Rao | Beijing Green Finance Association |
| Skender Sahiti-Manzoni | La Banque Postale |
| SofÃa Burford | Implementasur |
| Stanislas Ray | ADEME |
| Taehan Kim | Principal Researcher |
| Tanguy Sene | MSCI |
| Xavier Lerin | Shareaction |
| Xi Liang | University College London |
EAG members volunteer in a personal capacity to provide technical advice over the duration of the project. While their expertise helps guide the development process, final content decisions rest solely with the SBTi. As a result, the final output does not necessarily represent or imply endorsement by individual EAG members or their employers.
Development timeline
An outline of the provisional development process through the first half of 2023 is set out below.
2024
August:
- FIs start testing the FINZ Standard Draft for a minimum of six weeks.
July: Publication of
- Financial Institutions Net-Zero Standard Consultation Draft V0.1 for public consultation. Stakeholders are invited to complete the survey until October 11th, 2024. The questions are also available in a PDF format.
- Financial Institutions Metrics and Methods Synthesis V1
- SBTi Expert Advisory Group for the Financial Institutions Net-Zero Standard Terms of Reference
- SBTi Financial Institutions Net-Zero Standard Terms of Reference
- SBTi Financial Institutions Net-Zero Conceptual Framework and Initial Criteria Consultation Draft - Public Consultation Feedback Summary
2023
June: Release of FI Net-Zero Standard Conceptual Framework and Initial Criteria Consultation Draft
2022
April: Publication of the Foundations for Science-Based Net-Zero Target Setting in the Financial Sector paper
June - August: Establishment of the SBTi FI Net-Zero Expert Advisory Group
Resources
An industry brief detailing the landscape of net-zero insurance target-setting guidance and more information on the first steps of the development of FI Net-Zero Insurance Standard (Underwriting Portfolios) has been published.
Contact
For queries relating to the development process, please contact financialinstitutions@sciencebasedtargets.org
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