SBTi Extends Finance Sector Consultation Deadline to August 2023

The Science Based Targets initiative has extended the deadline for its public consultation on new and updated resources for financial institutions to 23 August 2023, following multiple stakeholder requests. The consultation covers three draft documents: an updated Near-Term Financial Sector Guidance, a new Financial Institutions Net-Zero Standard, and a Fossil Fuel Finance Position Paper.

The SBTi launched the public consultation on 15 June 2023, making available for review the SBTi Financial Institutions Net-Zero Conceptual Framework and Initial Criteria, updated Near-Term Criteria Version 2 for financial institutions, and a draft Fossil Fuel Finance Position Paper. The consultation targets all categories of financial institution, including banks, investors, insurance companies and pension funds. Since the SBTi published its first financial institution framework in October 2020, more than 60 FIs have used it to submit near-term science-based targets for validation, with over 150 additional institutions publicly committed to setting such targets.

The consultation is designed to address identified gaps and challenges in the existing FI Near-Term Framework, including issues around financed emissions data maturity, minimum coverage thresholds, sector method availability and the inclusion of managed assets. The new resources build on growing adoption of the Partnership for Carbon Accounting Financials standards and reference net-zero initiatives under the Glasgow Financial Alliance for Net Zero, aiming for interoperability with these frameworks. The Fossil Fuel Finance Position Paper is intended to help financial institutions address their most emissions-intensive investment and lending activities.

The SBTi has released recordings of consultation events and deep-dive webinars on its YouTube channel to support stakeholder participation, covering the Net-Zero Standard draft, Near-Term Guidance Version 2 and the Fossil Fuel Finance Position Paper. Once the consultation closes and feedback is incorporated, the revised FI Near-Term Framework and the FINZ Standard V1 will be released for implementation. FIs that have publicly committed to setting science-based targets may extend their submission deadlines until six months after the publication of FINZ Standard V1, subject to notifying the SBTi before their current expiration date.

Key figure — 60+ financial institutions with validated near-term science-based targets