Gustavo Bernal Torres
Financial Sector Science-Based Targets Guidance
SBTi's new framework helps financial institutions set science-based targets and align their lending and investment activities with the Paris Agreement.
Financial institutions (FIs) differ from other economic sectors: they provide finance and other services to the companies that are responsible for reducing GHG emissions, rather than exercise direct control over GHG emission reductions. The central enabling role of finance is recognized in the Paris Agreement’s Article 2.1(c)on “making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.”
The framework includes target setting methods, criteria, atargetsetting tool, and this guidance document.