Financial Institutions Blake Goud Financial Institutions Blake Goud

Is It Possible To Define Criteria For Net Zero Credibility For Financial Institutions?

  • SBTi’s document is the latest step in the process of creating a financial institution Net Zero (FINZ) standard to be released in 2024

  • The criteria outlined are ambitious in their coverage of financed and facilitated emissions, which are defined as “Category 15+”, referring to the GHG Protocol’s substantially narrower definition of financed emissions

  • It will remain challenging to develop a consistent framework for forward-looking Net Zero plans that incentivize investment in transition activities while avoiding easier but less meaningful ‘portfolio decarbonization’

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