SBTi Invites Financial Institutions to Pilot Updated Near-Term Climate Criteria

The Science Based Targets initiative opened a call for financial institutions to pilot its updated Draft Near-Term Criteria and Recommendations for Financial Institutions Version 2.0. Applications were due by 15 December 2023, with the final criteria expected to be published in 2024.

The FINT Criteria V2 updates the SBTi's existing near-term framework for financial institutions, increasing ambition on temperature alignment toward 1.5C pathways from the prior well-below 2C standard. Key updates include a shorter timeframe for Scope 1 and 2 targets and integration of elements from the SBTi's draft Fossil Fuel Finance Position Paper. Findings from the pilot test will feed into the development of the final FINT Criteria V2, which will be reviewed and approved through SBTi's technical governance process before publication.

The consultation on the FINT Criteria V2 draft, issued in June 2023, also covered the draft Financial Institutions Net-Zero Standard Conceptual Framework, revised Near-Term FI Science-Based Targets Guidance V2, and the Fossil Fuel Finance Position Paper. These resources collectively define a framework for financial institutions to set credible near- and long-term net-zero targets across their portfolios. For Indian banks and asset managers increasingly subject to RBI and SEBI sustainability guidelines, SBTi alignment offers an internationally comparable climate disclosure benchmark.

Financial institutions with existing SBTi-validated targets are not required to update for five years from their validation date but are encouraged to adopt the latest criteria early. The existing FINT Criteria V1.1 will remain operational for six months after the final V2 is published. The final criteria will also inform the broader Financial Institutions Net-Zero Standard, which was being developed in parallel. Interested FIs were directed to the SBTi finance sector page and newsletter for updates.

Key figure — 15 December 2023 deadline for financial institution pilot test applications