Guidance for Banks on Credible Climate Target Setting and Alignment

The Guidance for Climate Target Setting for Banks recommends four overarching principles for banks to set credible, Paris-aligned net-zero targets.

• Four overarching principles: the guidance asks banks to individually and independently set and publicly disclose long-term and intermediate targets, establish an emissions baseline and annually measure and report the emissions profile of their lending, investment, and capital markets activities, use widely accepted science-based decarbonization scenarios, and regularly review targets to remain consistent with current climate science.
• Background and scope: the guidance is presented as good practice for banks and explicitly aims for alignment with the Paris Agreement; banks are encouraged to use the guidance and to apply it across lending, investment, and capital markets portfolios.