Financial institutions have a role to play in the system-wide change needed to reach net-zero emissions and limit global warming to 1.5°C above pre-industrial temperatures.

With Guidehouse’s support, the Science Based Targets initiative has developed and released a new framework that allows financial institutions—including banks, investors, insurance companies, pension funds, and other organizations—to set science-based targets that align lending and investment activities with the Paris agreement.

The launch comes against the backdrop of a growing awareness among financial institutions of the material risks posed by a changing climate, and the role of financial institutions to redirect capital to green solutions and technologies.

While nearly 1,000 companies in 50 other sectors have pledged to adopt science-based greenhouse gas reduction targets, a framework for banks and other financial institutions has not existed until now. So far, 55 financial institutions have committed to setting science-based targets.

Related Coverage

• Forbes: Setting Science-Based Targets for Financial Institutions