In July 2025, the Science-Based Targets initiative (SBTi) launched the Financial Institutions Net-Zero Standard, the first science-based framework tailored for financial institutions (banks, insurers, asset managers) to align their portfolios with global net-zero climate goals. The standard mandates including activities like lending, investments, underwriting, and capital markets actions when they represent at least 5% of an institution’s global revenue.
It also requires phased cessation of financing for fossil fuel expansion by 2030, promotion of zero-emissions building construction, and stipulates an “engagement-first” approach, encouraging institutions to push their investees to set their own science-based climate targets. A transition period is in place through December 2026, after which institutions will need to fully adopt both near-term and long-term targets.
Source: EticaNews
