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 cross their portfolios by 2050. The financial institutions net-zero (FINZ) standard is intended to complement and eventually supplant 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 24th, the SBTi published a Draft Financial Institution Net-Zero Standard for public consultation and pilot testing. This document is built on the previous drafts and incorporates feedback from financial institutions and other stakeholders. The public consultation has been extended to September 30th. Experts from the financial sector, academia and civil society across the globe are called to review the Draft FINZ Standard and provide feedback via the public consultation survey. Submissions for the pilot test closed on August 9th. Insights gathered from the public consultation and pilot will inform the development of the SBTi’s Financial Institution Net-Zero Standard.
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. Developed following a rigorous public consultation involving feedback from over 250 individuals in public workshops and 130 responses from an online survey, it represented the first step in developing a science-based, FI Net-Zero 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 SBTi Financial Institutions Net-Zero (FINZ) Standard Conceptual Framework and Initial Criteria 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 FI Net-Zero Expert Advisory Group (EAG) to guide the development process. The current members are:
- Adrian Chapman
- Adrian Fenton, PhD
- Alberto Gervasini
- Alex MacGillivray
- Alexandra Paltschik Rønneberg
- Amita Chaudhury
- Amanda Selhammer
- Andrew Howell
- Andrew Hutchison
- Anne de Claremont
- Anindita Pal
- Caroline Clarke
- Christina Ng
- Christine Mwangi
- Cynthia Cummis
- Eric Christensen
- Erik Lam
- Flora Min
- Franco Piza
- Gauthier Faure
- Gustav Magnusson
- Henrietta Stock
- Ian Edwards
- Jan Willem van Gelder
- Jane Thorstrup Jagd
- Jean-Yves Wilmotte
- Jesica Andrews
- Joy Williams
- Julia Bingler, PhD
- Julien Manceaux
- Justine Bolton
- Katharina Dittrich
- Kerry Constabile
- Lars Erik Mangset
- Leyla Javadova
- Lucy McCracken
- Minyoung Shin
- Mischa Repmann
- Patricia Moles
- Paul Greenop
- Paul Schreiber
- Peter Sandahl
- Raphael Slade
- Richard Cantor
- Serge Younes, PhD
- Shu Ling Liauw
- Simone Kramer
- Skender Sahiti-Manzoni
- SofÃa Burford Arauetes
- Sylvain Vanston
- Xavier Lerin
The EAG plays an advisory and consultative role in producing the FINZ Standard.
Development timeline
An outline of the provisional development process through the first half of 2023 is set out below.
2024
July: Publication of
- Financial Institutions Net-Zero Standard Consultation Draft V0.1 for public consultation. Stakeholders are invited to complete the survey until September 30th, 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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