FINANCIAL INSTITUTIONS

Guidance for the finance sector

Why take action?

Financial institutions (FIs) are increasingly recognizing the extent of climate risks and their influence on the global economy. Investment and lending activities must be urgently reviewed to avoid catastrophic climate change and fund a climate-secure, net-zero future.

How to set a target

More than 100 FIs worldwide have already set near-term science-based emission reduction targets across their operations and portfolios and had them validated as in line with 1.5°C. Another 200 have committed to do so in the near future.

The SBTi’s Financial Sector Science-Based Targets Guidance allows FIs – including banks, investors, insurance companies, pension funds and others – to set science-based targets to align their lending and investment activities with the Paris Climate Agreement.

Get started today and view our resources to develop your target.

Near-Term Criteria V2 for Financial Institutions

The Science Based Targets initiative (SBTi) is piloting its Draft Near-Term Criteria and Recommendations for FIs Version 2.0 (FINT Criteria V2).

The SBTi published a consultation draft of its FINT Criteria V2 in 2023 for public feedback, along with the draft Near-Term Financial Sector Science-Based Targets Guidance, draft FI Net-Zero (FINZ) Standard Conceptual Framework and Initial Criteria for FIs and draft Fossil Fuel Finance Position Paper. The feedback received on the draft near-term guidance and fossil fuel paper can be viewed here.

The SBTi thoroughly reviewed the responses received and published a Pilot Test Version of the Near-Term Criteria, which includes elements of the Draft Fossil Fuel Finance Position Paper.

It’s also important to note that the criteria released for pilot testing relates only to our near-term guidance. It does not relate to the Financial Institutions Net-Zero Standard, which is also in development.

Findings from the pilot test will support the development of a final version of the FINT Criteria V2, which will be reviewed and approved in line with the SBTi’s technical governance. The final FINT Criteria V2 will be available to be used upon its publication in 2024. The existing FINT Criteria V1.1 will be operational six months after publication of the final FINT Criteria V2.

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