The Science Based Targets initiative (SBTi), a global organization that helps businesses set emissions reduction goals based on climate science, is developing a standard for financial institutions to set net-zero goals.
In its Net-Zero Foundations for Financial Institutions paper released on Tuesday, SBTi introduces new concepts for defining and setting net-zero goals for banks, asset owners, asset managers, and other financial institutions.
Over 450 major financial institutions around the world controlling assets over US$130 trillion have pledged to achieving net-zero emissions by 2050. In order to set continuous net-zero targets with carbon reductions in line with the Paris Agreement, they will need to take a science-based approach.
