FINANCIAL INSTITUTIONS

Guidance for the finance sector

Why take action?

Financial institutions are increasingly recognizing the extent of climate risks and their impact on every market sector. Investment and lending activities must be urgently reviewed to avoid the worst effects of catastrophic climate change and fund a climate-secure, zero-carbon future.

How to set a target

The Science Based Targets initiative’s new framework allows financial institutions – including banks, investors, insurance companies, pension funds and others – to set science-based targets to align their lending and investment activities with the Paris Agreement.

Get started today. Commit to set a target and download our new resources to develop your target:

New tool for temperature scoring and portfolio coverage

We have developed a data-agnostic Python library that is primarily for integration into commercial and homegrown decision support and portfolio management systems, but can also be run as a standalone solution. It is based on the temperature scoring method developed by CDP and WWF.

This tool helps financial institutions to assess the temperature alignment of current emission reduction targets, commitments, and investment and lending portfolios. This information can be used by financial institutions to develop GHG emission reduction targets for official validation by the SBTi, develop engagement strategies and help with strategic security selection and allocation decisions.

Learn more

Browse more sectors

If your sector is not listed here, you can still set a science-based target using our methods and resources. Consult the step-by-step guide to get started.

Sector Status
Aluminium Scoping Phase View
Forest, Land and Agriculture (FLAG) Scoping Phase View
Power Finalized View
Transport In Development View
Oil and Gas In Development View
Chemicals and Petrochemicals Scoping Phase View
Financial institutions In Development View
Apparel and footwear Finalized View
Information and Communication Technology (ICT) Finalized View