Guidance for Climate Target Setting for Banks: Version 3

Year Published

2025

Contributing Organizations

United Nations Environment Programme Finance Initiative (UNEP-FI)

Net Zero Banking Alliance (NZBA)

Type of Resource

Guidance

Languages

English

Relevant Topics

Core Topic

Target Setting

Topic 2

Disclosure Standards

Topic 3

Climate Reporting

Target Audience

Banks

Relevant Geography

Global

Resource Description

This guidance provides a framework to support NZBA members in setting credible, science-based emissions reduction targets aligned with net zero goals and a 1.5°C pathway.

Why This Matters

The resource offers banks a structured and credible approach to climate target setting, meeting growing regulatory and stakeholder expectations for transparency and accountability.

Key Insights

Recommends banks to independently set and disclose long-term and interim net-zero targets aligned with the Paris Agreement
Suggests banks establish a baseline and report annually on emissions from lending, investment, and capital markets activities
Stresses the importance of using widely accepted, science-based decarbonization scenarios to inform target setting
Recommends that targets are regularly reviewed and updated to reflect the latest climate science

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