Guidelines for Climate Target Setting for Banks

Guidelines for Climate Target Setting have been developed by UNEP FI in collaboration with 38 Banks representing €12.4tn across 6 continents. The guidelines focus on achieving an impact in the real economy and outline 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 banks, including:

• Public disclosure of long-term and intermediate targets to support meeting the temperature goals of the Paris Agreement.
• Establishment of an emissions baseline and annually measure and report the emissions profile of their lending portfolios and investment activities.
• Application of 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.
• Regular review of targets to ensure consistency with current climate science.