The Science Based Targets initiative (SBTi) has launched the first-ever Net-Zero Standard for financial institutions, providing clear and actionable guidance to align their lending, investment, insurance and capital markets activities with the goal of limiting global warming and reaching net-zero emissions by 2050. This new Standard supports banks, asset managers, private equity firms and other financial institutions in building climate resilience, managing risks and seizing emerging opportunities while meeting stakeholder expectations and advancing the global net-zero transition.
Key innovations include:
- Expanded asset class coverage
- Enhanced emissions transparency
- New options for focusing on customer alignment rather than direct financed emissions
It also tackles emissions-intensive activities through requirements addressing deforestation risks and a defined fossil fuel transition policy. Developed through extensive consultation and testing with over 30 institutions and global experts, the Standard aligns with existing SBTi frameworks and has already seen commitments from nearly 135 financial institutions worldwide.
