The Science Based Targets initiative (SBTi) is releasing a second draft of its Financial Institution Net-Zero (FINZ) Standard for public consultation and has invited experts from the finance sector, academia, and civil society to review and provide feedback on the draft. The consultation survey will be open until September 20th. Additionally, the SBTi will host a global webinar on August 22nd to discuss the FINZ Draft and answer stakeholder questions.
The SBTi’s FINZ development process is rigorous and transparent, including research, expert consultations, public feedback, and pilot testing. This process began before the publication of the Standard Operating Procedure (SOP) for SBTi Standards, which guides the development of these standards.
The SBTi is also seeking financial institutions to pilot the Draft FINZ Standard. Interested participants should submit the FINZ Standard – Consultation Draft Pilot Testing Application Form by August 9th. The pilot test will run concurrently with the public consultation and will help refine the FINZ Standard.
In 2023, the SBTi received 139 responses to a public consultation on the initial FINZ draft. The feedback has been reviewed, and the draft has been updated accordingly. Currently, 120 financial institutions have validated near-term science-based targets under the SBTi’s FI Near-Term (FINT) Criteria. The Draft FINZ Standard expands on these criteria to include new target-setting options and long-term net-zero targets.
The new draft also introduces enhanced approaches to near-term targets and aims to align more closely with the broader climate finance ecosystem. Once finalized and approved, the FINZ Standard will replace the current FINT Criteria. Financial institutions are encouraged to use the FINT Criteria for near-term target setting until the FINZ Standard is adopted.
The next steps include reviewing feedback from the public consultation and pilot testing, updating the Draft FINZ Standard, and presenting it to the Technical Council for approval. Following this, the Board of Trustees will consider the standard for formal adoption, with the final FINZ Standard expected to be published upon approval.