Commercial, GHG Emissions - October 7, 2020
SBTi releases first framework for financial institutions
The Science Based Targets initiative released Oct. 1 the first framework established for financial institutions to set science-based targets and align their lending and investment activities with climate science.
Fifty-five financial institutions have already committed to these science-based targets based on keeping their operations and portfolios in alignment with the Paris Agreement, including Bank J. Safra Sarasin in Switzerland, Standard Chartered in the U.K., Eurazeo in France and Amalgamated Bank in the U.S. This is the first framework available for banks and other financial institutions to adopt emissions reductions targets, while there have been nearly 1,000 companies across 50 other sectors that have pledged to align their decarbonization plans with the Paris Agreement.
The institutions that have made these commitments are emphasizing their role in redirecting capital to green solutions and technologies.
“Today’s breakthrough means banks and other financial institutions can better understand and act on the link between their lending and investing activities and real-economy emissions. The finance sector now can, and must, build the bridge to a net-zero emissions economy and enable system-wide improvements based on climate science,” Cynthia Cummis, SBTi Steering Committee member and Director at World Resources Institute, said in a statement. “The SBTi’s framework highlights the power of financial institutions to redirect capital to companies contributing to the low-carbon transition, and away from those that contribute to climate change.”