SBTi Opens Pilot Applications for Financial Institutions Net-Zero Standard

The Science Based Targets initiative invited financial institutions worldwide to apply to pilot test its forthcoming Financial Institutions Net-Zero Standard in July 2024, with applications due by 9 August 2024. The pilot, which began on 19 August 2024, offered participating institutions advance access to the draft standard and direct engagement with the SBTi project team.

SBTi released a call for financial institution pilot testers as part of the development process for the Financial Institutions Net-Zero Standard. Interested institutions were required to complete the FINZ Standard Consultation Draft Pilot Testing Application Form by 9 August 2024. The pilot commenced on 19 August 2024 for a minimum of six weeks, during which participants engaged with the draft standard, flagged issues through Q&A sessions and surveys, and provided structured feedback. A draft standard for piloting was released by the end of July 2024.

The Financial Institutions Net-Zero Standard is designed to enable banks, asset owners and managers, private equity firms, and other financial institutions to align their lending, investment, insurance, and capital markets activities with net-zero by 2050. Financial institutions play a unique role as enablers and facilitators of the real economy, and their alignment with net-zero pathways has the potential to catalyse decarbonisation across entire portfolios of corporate clients. For Indian banks and asset managers facing growing pressure from regulators and global investors on climate risk disclosure, the standard provides a credible framework for demonstrating structured climate ambition.

The SBTi Terms of Reference for the FINZ Standard describe an extensive development process including exhaustive research, expert advisory input, and public consultation. The project team evaluated pilot applications to ensure diversity across financial activity types, emissions profiles, geographies, and business sizes. Targets developed through the pilot were not intended to constitute formally validated science-based targets, but participants could use insights gained to prepare subsequent formal validation submissions. Public consultation on the draft standard also commenced at the end of July 2024.

Key figure — Minimum six-week pilot testing period beginning August 19, 2024