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 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 Climate Agreement.

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

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.

In response, 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 is being 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.

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 greenhouse gas emission reduction targets for official validation by the SBTi, develop engagement strategies and help with strategic security selection and allocation decisions.

WATCH: Temperature Scoring Tool and Portfolio Coverage Tool demonstrations

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 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
Maritime Finalized View
Oil and Gas In Development View
Power Finalized View
Steel Finalized View
Transport In Development View