SBTi Publishes New Guides to Help Financial Institutions Set Net-Zero Targets

The Science Based Targets initiative has released two new resources — a Financial Institutions Getting Started Guide and an Insurance Underwriting Explanatory Note — to help banks, insurers, asset managers and other financial institutions navigate its net-zero target-setting frameworks. The publications are designed to clarify key concepts, outline applicable target types, and provide practical first steps for institutions at the start of their science-based target journey.

The Financial Institutions Getting Started Guide acts as a structured entry point, helping organisations identify whether to set near-term targets using the SBTi Financial Institutions Near-Term Criteria or both near- and long-term targets using the Financial Institutions Net-Zero Standard. The guide maps which resources apply to each step of the target-setting process and explains how the two frameworks interact with each other and with sector-specific criteria. It is designed to reduce the complexity faced by financial institutions that manage multiple categories of financial activities, from lending to insurance underwriting.

The Insurance Underwriting Explanatory Note addresses a gap that emerged when the Financial Institutions Net-Zero Standard became the first framework to incorporate insurance underwriting into science-based target setting. Developed with support from the United Nations Environment Programme Finance Initiative's Forum for Insurance Transition, the note provides practical implementation guidance for primary insurers, reinsurers and composite financial groups with insurance business lines. It includes illustrative examples intended to be informative for banks, asset managers, and private equity firms as well.

Together, the new publications support financial institutions in treating climate targets as anchors for transition planning and portfolio risk management, rather than standalone compliance exercises. The SBTi positions science-based climate action by financial institutions as a strategic tool for managing climate-related portfolio risks, strengthening long-term financial stability, and aligning with global climate goals. Indian financial institutions with international lending, investment, or underwriting exposure face growing expectations from global counterparties to demonstrate credible net-zero alignment.

Key figure — Over 170 financial institutions in more than 30 countries have validated near-term targets