The Alliance recognises of the vital role of banks in supporting the global transition of the real economy to net-zero emissions. All banks who are members of the Alliance have signed the Commitment Statement and will use the accompanying Guidelines for Climate Target Setting.
The Commitment Statement is a pre-requisite for joining the Net-Zero Banking Alliance, and is signed by a bank's CEO. All banks that have signed the commitment will:
- Transition the operational and attributable GHG emissions from their lending and investment portfolios to align with pathways to net-zero by 2050 or sooner.
- Within 18 months of joining, set 2030 targets (or sooner) and a 2050 target, with intermediary targets to be set every 5 years from 2030 onwards.
- Banks’ first 2030 targets will focus on priority sectors where the bank can have the most significant impact, ie. the most GHG-intensive sectors within their portfolios, with further sector targets to be set within 36 months.
- Annually publish absolute emissions and emissions intensity in line with best practice and within a year of setting targets, disclose progress against a board-level reviewed transition strategy setting out proposed actions and climate-related sectoral policies.
- Take a robust approach to the role of offsets in transition plans.
Guidelines for Climate Target Setting for Banks
The commitment is underpinned by the bank-led UNEP FI Guidelines for Climate Target Setting for Banks . These guidelines have been developed by signatories of the Collective Commitment to Climate Action, a leadership group under the UNEP FI Principles for Responsible Banking. The guidelines outline four principles for target-setting:
- Banks shall set and publicly disclose long-term and intermediate targets to support meeting the temperature goals of the Paris Agreement.
- Banks shall establish an emissions baseline and annually measure and report the emissions profile of their lending portfolios and investment activities.
- Banks shall use widely accepted science-based decarbonisation scenarios to set both long-term and intermediate targets that are aligned with the temperature goals of the Paris Agreement.
- Banks shall regularly review targets to ensure consistency with current climate science.
“Immediacy of action, transparency and accountability underpins this commitment, and we encourage all financial institutions to follow their peers in committing to achieving the drastic reduction of emissions required over the next decade if we are to succeed in limiting global heating to 1.5°C.”
– Inger Andersen, Executive Director of the UN Environment Programme