SBTi releases net-zero standard for finance industry

The Science Based Targets initiative (SBTi) published its Financial Institutions Net-Zero Standard by late July, which provides clear, actionable science-based guidance for banks, asset owners and managers, private equity firms and other financial institutions to align their lending, investment, insurance, and capital markets activities with limiting global warming and achieving net-zero by 2050.

The Standard also addresses key climate challenges through requirements focused on the most emission-intensive activities, including: i) addressing deforestation exposure; ii) A fossil fuel transition policy requirement.

The Standard is fully aligned with the SBTi’s flagship Corporate Net-Zero Standard (originally released in October 2021 and reviewed in March 2025). About 135 financial institutions across six continents have committed to set net-zero targets against the new Financial Institutions Standard.