Guidehouse helps develops a framework for financial institutions to align lending and investment with the Paris agreement
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.
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