Summary
Details
- Global
Any financial institution can use the FINZS, regardless of size or location, provided it carries out activities such as lending, investing, or underwriting.
Deep dive
📩 Stay ahead of climate regulation and reporting shifts
Regulatory updates, reporting standards, and new climate software — distilled into one concise weekly brief for decision-makers.
Thanks for signing up. Please check your inbox to confirm your subscription.
Practical updates. Once per week.
Overview
The SBTi Financial Institutions Net-Zero Standard (FINZS) is a voluntary framework that enables financial institutions to set science-based targets aligned with achieving net-zero greenhouse gas emissions by 2050. Launched in July 2025, it is the first SBTi standard specifically tailored to financial institutions, covering activities such as lending, investing, insurance underwriting, and capital markets. The standard focuses on financed emissions (Scope 3, category 15) and provides methodologies for aligning portfolios with 1.5°C climate pathways. It applies globally to banks, asset managers, asset owners, insurers, and other financial actors.
Assessment and reporting
FINZS requires financial institutions to set, measure, and disclose both near-term and long-term climate targets across their portfolios.
Target-setting and assessment
Institutions must:
Set near-term targets (typically to 2030) to reduce financed emissions in high-impact sectors
Set long-term net-zero targets (by 2050 or earlier), covering all relevant financial activities
Align portfolios using sector-specific pathways and climate-alignment metrics
Monitor progress through portfolio emissions and alignment indicators
The framework emphasises that financial institutions influence emissions indirectly, primarily through capital allocation and engagement with clients.
Reporting requirements
Participating institutions are expected to:
Disclose financed emissions data and methodologies used
Report on portfolio alignment metrics and progress toward targets
Publish climate transition plans outlining how targets will be achieved
Improve data quality, transparency, and coverage over time
Reporting is ongoing, with institutions expected to track progress, update targets, and communicate results regularly. The standard also encourages alignment with broader disclosure frameworks (e.g. TCFD, ISSB) and supports the use of third-party methodologies for portfolio alignment assessment.
Current status
The Financial Institutions Net-Zero Standard was finalised and released by the Science Based Targets initiative in July 2025 following consultation and pilot testing with financial institutions. It is currently available for voluntary adoption, with a transition period until at least December 2026, during which it coexists with the earlier SBTi Financial Institutions Near-Term Criteria. From 2027 onwards, the FINZS is expected to become the primary framework for financial institutions seeking SBTi validation of net-zero targets.
Resources
Cut through the green tape
We don't push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information. Why you seek it is not our concern.