This Standard sets out investor expectations and best practices for U.S. and Canadian banks on the transition to net zero. It focuses primarily on a bank’s financed and facilitated emissions (part of scope 3 emissions), rather than on emissions associated with their operations, since financed and facilitated emissions are much larger and reflect greater business risks and opportunities.
Through their financing of corporate economic activity, banks contribute to the emissions of nearly every business sector, making them key to advancing the global goal of limiting average temperature rise to 1.5 degrees Celsius and the economic opportunities of the low-carbon transition.
This guide is designed to help investors engage with American and Canadian banks on transitioning to a net zero emissions economy and for banks to understand investor expectations. Based on the Net Zero Standard for Banks published June 5, 2023 by the Institutional Investor Group on Climate Change (IIGCC) and developed in consultation with the Transition Pathway Initiative Global Climate Transition Center, the Standard has been adapted for the North American market. The Standard also complements the Net Zero Investment Framework used by the investment community to assess and manage climate risk and net zero alignment in their portfolios.