On 15th June 2023, the SBTi released three new draft resources relevant to financial institutions (FIs) for public consultation. Note that the SBTi classifies any of the below as an FI:
- Asset managers/ owners
- Retail/ commercial banks
- Insurance companies functioning as an asset manager
- Mortgage real estate investment trusts
- Organisations obtaining >5% of annual revenue from investments or the above activities.
The update expands upon the currently available near-term guidance for the finance sector to provide an initial outline of the expectations of FIs when setting net zero carbon targets. These expectations include a specific paper dedicated to addressing fossil fuel finance and the provision of an effective but just transition to a low carbon future.
The consultation response has now closed and will be deliberated over by the SBTi in the lead up to final publication of the framework in Q1/2 2024. A team of our net zero strategy consultants have explored the contents of the consultation documents and summarised their findings in a briefing pack which you can download here.
The comprehensive pack includes:
- The Science Based Targets initiative introduction
- SBTi Financial Institutions guidance overview
- Emissions coverage
- Near-term targets
- Long-term (net zero) targets
- Fossil fuel finance
Complete the form to download the briefing pack.