Financial Institutions

• Financial Institutions Net-Zero Standard: Provides criteria for financial institutions to set net-zero science-based targets.
• Financial Institutions Net-Zero Standard One-Page Summary: Outlines the key elements of the Standard.  
  • Arabic translation
  • French translation
  • Indonesian translation
  • Japanese translation
  • Korean translation
  • Chinese translation
  • Portuguese translation
  • Spanish translation
• Financial Institutions Net-Zero Standard In Brief: Gives an accessible overview of the Standard for those thinking of setting targets.
• Financial Institutions Net-Zero Standard Executive Summary: Includes high-level information on net-zero target setting for financial institutions.
• 'Explaining the Standard' Slide Pack: Guides users through the main elements of the Standard.
• Basis for Conclusions Report: Gives further insight into how the Standard was developed.
• Global Launch Webinar Recording: Presenters provide an overview of the Standard, a deep dive into the criteria, and the answer to some frequently asked questions.
  • Chinese recording
  • French recording
  • Portuguese recording
  • Spanish recording
  • Global Launch Webinar Slide Pack
• Financial Institutions Net-Zero Jargon Buster: Breaks down key terminology from the Standard.
• Near-term and net-zero: Understanding the SBTi’s frameworks for financial institutions:  Blog outlining the similarities and differences between the Financial Institutions Net-Zero Standard and the Financial Institutions Near-Term Criteria.

• SBTi Services Financial Institutions Net-Zero Submission Form: Provides a standardized method to compile and submit necessary information for the target validation process.
• Financial Institutions Net-Zero Target-Setting Tool: Helps calculate the minimum required ambition for portfolio climate-alignment targets, determine the climate alignment of counterparties, and understand the minimum required ambition for sector-specific targets.
  • For the maritime, buildings, and forest, land, and agriculture (FLAG) sectors, financial institutions should use the SBTi Maritime Transport Tool, Buildings Target-Setting Tool, and FLAG Target-Setting Tool, respectively.
• Target-Setting Methods and Tool Documentation: Includes detailed explanation of algorithms for the target-setting methods used within this Standard.
• SBTi Services Criteria Assessment Indicators: Provides verifiable control points, which will be evaluated during the target validation process to assess conformity with this Standard.
• SBTi Fossil Fuel Transition Policy and Target Template: Provides an optional template that may be used by financial institutions that set fossil fuel transition policies and targets under the SBTi Financial Institutions Net-Zero Standard.

To strengthen interoperability with the broader climate ecosystem, the Financial Institutions Net-Zero Standard allows financial institutions to use eligible third-party methodologies, taxonomies and other data sources to assess how their portfolio companies and activities align with net-zero pathways.

• The Financial Institutions Net-Zero Standard Implementation List identifies which third-party resources may be used specifically for near- and long-term climate alignment target setting, but not for other targets within the Standard.
• The Financial Institutions Net-Zero Standard Protocol for Usage of Third-Party Methodologies sets out the process for how the SBTi evaluates third-party methodologies—ensuring they align with best practice criteria—and explains how eligible methods are added or removed. 

These documents facilitate interoperability between the Financial Institution Net-Zero Standard and other established methods and metrics in the financial sector, helping to make the path to setting net-zero targets more accessible and in line with current practices.

Financial institutions that have publicly committed to setting a near-term science-based target have the option to extend their submission deadline until six months after the publication of the Financial Institutions Net-Zero Standard.

Financial institutions seeking this extension must inform the SBTi prior to their current public expiration date by emailing commitment@sbtiservices.com.

Financial institutions with SBTi-validated near-term science-based targets are not required to take further action until their targets undergo the required five-year review cycle.

Existing financial institutions net-zero commitments are due 24 months after the release of the Financial Institutions Net-Zero Standard.

• Project initiation: The project started in 2021. The Foundations for Science-Based Net-Zero Target Setting in the Financial Sector was published in 2022, providing principles, definitions, metrics, and target formulation considerations for financial institutions to set net-zero targets.
• Public consultations: The SBTi held two public consultations for expert feedback on the draft resources. The first one from June-August of 2023, and a second consultation from July-October of 2024. Between these periods, the resources were updated based on input received. Read the first public consultation feedback summary and the second public consultation feedback summary.
• Pilot testing: The draft Standard was pilot tested by 33 financial institutions from August-December 2024. The pilot involved hands-on trials with financial institutions using real-world data to test the draft Standard, and provide feedback on its implementation. Read the pilot test feedback report.
• Final publication: The Financial Institutions Net-Zero Standard Version 1.0  was published in July 2025 following approval by the Technical Council and adoption by the Board of Trustees. 

The SBTi established and regularly convened a dedicated Expert Advisory Group (EAG) of technical experts from corporates, finance, non-profits and multilateral organizations who served in a voluntary advisory capacity throughout the development of the project.  It was disbanded in July 2025 and included the following individuals:

• Adrian Chapman - Legal & General
• Adrian Fenton - Institutional Investors Group on Climate Change
• Alberto Gervasini - ING
• Alex MacGillivray - Joint Impact Model Foundation
• Alexandra Rønneberg - KLP
• Amanda Selhammer - Storebrand
• Andrew Hutchison - UBS
• Angelica Afanador - PCAF - Partnership for Carbon Accounting Financials
• Anindita Pal - EY
• Benjamin McCarron - Asia Research & Engagement
• Betsy Middleton - The Sunrise Project
• Butch Bacani - United Nations Environment Programme Finance Initiative
• Caroline Clarke - Accenture
• Christina Ng - Energy Shift Initiative
• Connor Chung - The Institute for Energy Economics and Financial Analysis
• Cynthia Cummis - Deloitte
• Daan Van Acker - InfluenceMap
• Duncan Lee - AIA
• Franco Piza - Bancolombia
• Gauthier Faure - Atos
• Georgina Smit - Green Building Council South Africa (GBCSA)
• Gustav Magnusson - EQT
• Harriet Assem - BVCA
• Ian Edwards - Griffith
• Jan Willem van Gelder - Profundo
• Jane Thostrup Jagd - WMBC
• Jesica Andrews - United Nations Environment Programme Finance Initiative
• Julia Bingler - Council on Economic Policies
• Justine Bolton - First Rand
• Katharina Dittrich - WBS
• Kerry Constabile - Oxford Environmental Change Institute (University of Oxford)
• Lars Erik Mangset - Greig
• Leonie Ederli Fickinger - Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
• Lizeth Palencia - PRI
• Luis Alejandro Meija - IDB Invest
• Matthew Swabey - Aviva Group
• Neha Khanna - Climate Policy Initiative
• Nils Bartsch - Urgewald
• Patricia Moles - Instituto Tecnológico Autónomo de México
• Paul Schreiber - Reclaim Finance
• Peter Sandahl - Nordea
• Rebecca Lea - Association of British Insurers
• Richard Cantor - Moody’s
• Serge Younes - Investindustrial
• Shuling Rao - Beijing Green Finance Association
• Skender Sahiti-Manzoni - La Banque Postale
• Sofía Burford - Implementasur
• Stanislas Ray - ADEME
• Taehan Kim - Korea Sustainability Investing Forum (KoSIF)
• Tanguy Sene - MSCI
• Xavier Lerin - Shareaction
• Xi Liang - University College London

EAG members volunteered in a personal capacity to provide technical advice over the duration of the project. While their expertise helped guide the development process, final content decisions rest solely with the SBTi. As a result, the final output does not necessarily represent or imply endorsement by individual EAG members or their employers.

• Financial Institutions’ Near-Term Criteria Version 2.0: Allows financial institutions to set near-term, science-based emissions reduction targets.
• Near-term Criteria translations:
  • Arabic
  • French
  • Japanese
  • Chinese
  • Portuguese
  • Spanish

Please note that all targets must be submitted in English. 

• Financial Institutions’ Near-Term Criteria in Brief: Provides a high-level overview of how different types of financial institutions can use the near-term criteria to set science-based targets.
• SBTi Services Criteria Assessment Indicators: Outlines the major checks conducted by SBTi Services during the validation process.
• Private Equity Sector Science-Based Target Guidance V1: Enables private equity firms to set near-term science-based targets.
• FAQs on the Private Equity Sector Science-Based Target Guidance: Answers some of the most frequently asked questions from private equity firms wanting to set near-term science-based targets.
• SBTi Services Financial Institutions Target Submission Form V2.1: Target setting entities need to complete this form to submit near-term targets for validation purposes.
• Financial Institutions’ Near-Term Criteria V2 Explanatory Document: Provides practical guidance to those using the criteria.
• Financial Institutions’ Near-Term Criteria V2 Main Changes Document: Summarizes the development process, outlines the main updates from V1 to V2 and sets out the key issues and concerns that were addressed.  

Target-setting tools for 1.5°C-aligned targets under the Financial Institutions’ Near-Term Criteria 

The Corporate Near-Term Tool models targets with a 1.5°C ambition. It was developed for companies and can be applied to sector-level components of financial institutions’ portfolios, including power and cement. 

Financial institutions seeking to set 1.5°C-aligned targets on emissions related to other sectors with SBTi guidance available should refer to the applicable sector-specific tools on the sector webpages listed below:

• Air Transport
• Buildings
• Forest, Land and Agriculture
• Land Transport
• Maritime Transport
• Steel

Target-setting tool for well-below 2°C-aligned targets under the Financial Institutions’ Near-Term Criteria 

The science-based target-setting tool is for use only by financial institutions who want to model targets with a well-below 2°C ambition, and is to be applied to sector-level components of financial institutions’ portfolios. 

For those using the Financial Institutions Near-Term Criteria V2 to set targets, the tool can be used for the following sectors:

• Aluminium
• Pulp and paper

SBTi’s Finance Temperature Scoring & Portfolio Coverage Tool  - the ‘Finance Tool’

The Finance Tool helps financial institutions assess the temperature alignment of current emissions reduction targets, commitments, investment and lending portfolios. It is based on the temperature scoring methodology developed by CDP and the World Wide Fund for Nature. 

Temperature scores used for targets that are submitted to the SBTi Services for validation may be calculated using the SBTi’s Finance Tool or using other third-party tools or ready-made temperature scores consistent with an applicable temperature scoring methodology.

Need help with the Finance Tool?

• Finance Tool User Guide
• Finance tool demonstration
• Finance Tool user workshop recording and slides
• Finance Tool tech deep dive recording and slides

Useful information on the Finance Tool 

• Finance Tool repository (Github)
• Technical Documentation (Online)
• Data Requirements: Portfolio Data Template and Company Data Template
• CDP-WWF Temperature Rating Methodology
• Getting Started Using Python
• Temperature Scoring Analysis Workflow Example

The main stages of the Financial Institutions Near-Term Criteria V2 project were as follows:

• Project initiation: The project started in April 2022.
• Public consultation: The SBTi ran a public consultation on the draft Criteria from June-August 2023. Feedback received helped inform the second draft of the Criteria for pilot testing.  
• Pilot testing: The revised draft was tested by a group of 28 financial institutions using real-world data from December 2023-February 2024.
• Final publication: Version 2 of the Criteria was published in May 2024. 

Find out more about the development of the Criteria in the launch webinar and explainer blog. 

The SBTi defines a financial institution as an entity that generates 5% or more of its revenue from investment, lending or insurance activities. This includes banks, asset managers, private equity firms, asset owners, insurance companies and mortgage real estate investment trusts.

Real economy companies that have more than 5% of their revenue from financial activities are encouraged to use the Financial Institutions Near-Term Criteria V2 to set targets on those activities in addition to their corporate targets under the Corporate Net-Zero Standard.

Commercially-operated private and public financial institutions (including public pension funds and sovereign wealth funds) may set science-based targets with SBTi.

Financial institutions can choose to use either the Financial Institutions Net-Zero Standard or the Financial Institutions Near-Term Criteria, depending on their level of ambition. The SBTi's wholly-owned subsidiary, SBTi Services, checks and validates the science-based targets of corporates, financial institutions, and small and medium-sized enterprises (SMEs).

By validating your targets with SBTi Services you will:

• Demonstrate that your climate goals are robust and credible to investors and customers.
• Ensure your science-based targets are aligned with the latest climate science.
• Gain reassurance that your goals will remain relevant in the near- and long-term through re-validation by SBTi Services following mandatory target recalculation.

So what are you waiting for? Visit the SBTi Services website to get started today!

Currently, financial institutions may choose to use either the Financial Institutions Net-Zero Standard or the Financial Institutions Near-Term Criteria, depending on their level of ambition, until at least December 2026. 

During this transition period, the SBTi will implement a monitoring and evaluation phase to inform next steps. It is expected that from January 2027, financial institutions will use the Financial Institutions Net-Zero Standard to set new near-term and long-term targets.

To provide feedback on the SBTi's resources for financial institutions, use the Financial Institutions Standard and Guidance Feedback Form.

For queries related to our financial institutions work, please contact financialinstitutions@sciencebasedtargets.org.

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