Mark Carney hints at a COP 26 role for the Science Based Targets initiative as a TCFD pathway for the finance sector.
Financial institutions can now align their decarbonisation efforts with the Paris Climate Agreement by adopting science-based greenhouse gas reduction (GHG) targets, following the release of a framework and validation service by the Science Based Targets initiative (SBTi).
A total of 58 financial institutions have committed to setting science-based targets and are expected to now work with SBTi to validate their climate-related action plans. The banks, insurers and asset managers already signed up to SBTi include Amalgamated Bank, AXA Group, BBVA, BNP Paribas, Commerzbank, Credit Agricole, HSBC, ING Group, MetLife, Societe Generale, Standard Chartered, Swiss Re and Zurich.
The new framework is designed to help banks, investors and insurance firms to verify that their plans to decarbonise their loan books, portfolios and operations are aligned with the United Nations Intergovernmental Panel on Climate Change recommendation of keeping global warming to no more than 1.5 degrees above pre-industrial levels. Overall, almost 1,000 companies across 50 sectors, with a combined market cap of US$15.4 trillion, have pledged to align with the Paris Agreement via SBTi’s science-based GHG reduction targets.
Speaking at the launch webinar, Mark Carney, Special Envoy for Climate Action and Finance at the United Nations, and Finance Advisor to the UK Prime Minister for COP 26 … [READ MORE]