A getting-started guide on setting targets. Learn about the science, process, and context of target setting through this foundation guidance. As controllers and facilitators of capital, banks can be at the core of the systemic change needed to help decarbonise the economy to achieve a 1.5 degree temperature outcome. But leading this change requires banks to set and achieve ambitious, robust, and science-based targets – get started with the Foundations of Climate Mitigation Target Setting.
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For advanced target setting, look no further than the Guidelines for Climate Target Setting for Banks. Forming a core part of the Net-Zero Banking Alliance commitment, these guidelines outline key principles to underpin the setting of credible, robust, impactful and ambitious targets in line with achieving the objectives of the Paris Agreement.
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.
The guidelines are a core part of the UN-convened Net-Zero Banking Alliance commitment. The guidelines will be reviewed at least every three years, and sooner when required.
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