The SBTi is advancing its efforts towards a sustainable future with the recent unveiling of its consultation on a new draft standard specifically for financial institutions.
According to Environmental Finance, this initiative highlights a pivotal shift as the sector moves towards achieving net-zero emissions, reflecting the escalating commitment across the financial landscape to address climate change.
The draft standard set by SBTi includes a clear and comprehensive plan for financial institutions to achieve net-zero emissions. It mandates increasing financial activities that support climate solutions and requires institutions to track and quantify the proportion of their portfolio that is aligned with global climate goals. Moreover, the draft standard calls for an immediate cessation of new financial flows into various fossil fuel projects and entities. These measures are designed to streamline the sector’s contributions towards a more sustainable and environmentally friendly future.
The consultation, which opened recently, will accept feedback until 20 September, giving stakeholders a substantial window to contribute their insights and suggestions. This follows the first draft, which garnered 139 responses, indicating significant interest and engagement from the community. Additionally, SBTi has initiated a call for participants from financial institutions to pilot this draft standard, with applications open until 9 August.
Key quotes from the initiative underscore the importance of this new standard. “This draft standard not only sets the pathway for financial institutions but also aligns our collective efforts towards the global climate goals,” SBTi representatives explained.
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