Set SMART targets that address the significant impacts your bank has identified, and work towards achieving them.

After conducting the impact analysis in step 1, signatory banks must set at least 2 targets to address the significant impact areas they have identified. The targets need to be Specific, Measurable (quantitative or qualitative), Achievable, Relevant and Time-bound (SMART). This helps signatory banks directly address the positive and negative impacts of their business activities, and ensures clear alignment between signatory banks’ sustainability strategies and the UN Sustainable Development Goals and the Paris Climate Agreement.

In addition to setting ambitious targets, signatory banks must also set milestones, as well as define and implement actions to meet their set targets. Read more about this in the 3 key steps. Signatory banks can find training, peer learning and tools to help with this step in the Members Area, join a working group or browse the guidance on best practice when setting targets.

Target-Setting Guidance

Working groups of signatory banks worldwide have contributed to creating the below guidance, working with UNEP FI and other experts in the field.

Guidance on Resource Efficiency and Circular Economy Target Setting

The Guidance on Resource Efficiency and Circular Economy Target Setting is a comprehensive, step-by-step guide for banks interested in increasing the sustainable use of resources such as energy, waste, water and raw materials and building a circular economy, where waste and pollution are eliminated, products and materials are kept in use at their highest value and natural systems are regenerated.

Guidance on Biodiversity Target-setting

The Guidance on Biodiversity Target Setting is designed for PRB signatories, allowing banks to take a systematic approach to setting and achieving biodiversity targets. The guidance presents three real-life case studies, and includes a detailed how-to guide and has been developed by 30 PRB signatories, UNEP FI, UNEP-WCMC and the Science-based Targets Network (SBTN). 

Guidance on Financial Health & Inclusion Target Setting

Banks with ambitious targets for financial inclusion and/or financial health can drive positive outcomes for individuals, entrepreneurs, the whole society and the wider economy. The Guidance on Financial Inclusion and Financial Health Target Setting supports signatory banks in their efforts to set targets in line with the requirements of the PRB.

Guidelines for Climate Target Setting for Banks

The Guidelines for Climate Target Setting for Banks outline key principles to underpin the setting of credible, robust, impactful and ambitious targets in line with achieving the objectives of the Paris Agreement.

Guidance on Gender Equality Target Setting

The Guidance on Gender Equality Target Setting delivers a practical example of what a gender equality target can look like, providing guidance on the different elements of setting targets in line with the requirements of the PRB, and what alignment with international and national frameworks can look like. Esta guía está disponible en español.

Working Groups

Joining our working groups is a great opportunity for signatory banks to lead at the cutting-edge of responsible banking through developing practical guidance and pioneering tools with other pioneering banks.

Biodiversity: this working group published guidance in June 2021 on indicators, metrics, methodologies to help banks set biodiversity targets across activities in line with international frameworks and the Principles for Responsible Banking. Look out for details on the capacity building programme set to begin in Q4 2021.

Financial inclusion: this working group published guidance in May 2021, designed to support signatories to set targets for financial inclusion and financial health in alignment with the Principles for Responsible Banking. Banks are now working on a collective commitment which will be launched in December 2021.

Resource Efficiency: Launched in April 2021, this working group is developing guidance on indicators, metrics and methodologies for target setting on resource efficiency.

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