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.

Watch the video below to learn more about what's coming in 2022:

Net-Zero Foundations for Financial Institutions

Financial institutions with US$130 trillion in assets under management are now committed to reaching a state of net-zero before 2050. A science-based approach is therefore needed to financial institutions' net-zero target setting.

To support this, the SBTi has developed a foundational framework representing the first step in defining net-zero for financial institutions. A public consultation on the draft began on 10 November 2021. Stakeholder feedback informed the final publication of the net-zero for financial institutions foundations paper in April 2022.

The foundations paper will be followed by an open stakeholder process to develop actionable criteria, detailed guidance, and technical resources to support financial institutions in the formulation and implementation of their science-based net-zero targets.

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
Apparel and footwear Finalized View
Aviation Finalized View
Buildings In Development View
Chemicals In Development View
Cement In Development View
Financial institutions Finalized View
Forest, Land and Agriculture (FLAG) In Development View
Information and Communication Technology (ICT) Finalized View
Oil and Gas In Development View
Power Finalized View
Steel In Development View
Transport In Development View
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