I'm a financial institution, how do I commit and submit targets to SBTi?

SBTi commitments and submissions
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Please follow the following 5 step process to join SBTi.

Step 1: Commit to Set a Science-based Target
Financial institutions that wish to commit to set a science-based target should review and complete the
commitment letter and send it to commitments@sciencebasedtargets.org. Signing the commitment
letter indicates that your institution will work to set a science-based emissions reduction target aligned
with the Science Based Targets initiative’s criteria for financial institutions (the link will be added when
available).

Step 2: Develop a Target
Starting from October 1, 2020, financial institutions will have up to 24 months to complete the following
steps once they sign the commitment letters. Previously committed financial institutions will have 24
months from October 1, 2020 to have their targets approved and announced by SBTi:
(i) Develop science-based targets aligned with the SBTi criteria for financial institutions;
(ii) Submit the targets to the SBTi for a validation; and
(iii) After approval, have the SBTi publish your targets and other related information on the relevant
websites.

Step 3: Submit the Targets for a Validation
How Company Information is Treated
The SBTi safeguards the confidentiality of all information provided by the financial institution to assess its targets. This means that information provided will be used in accordance with the target validation service contract that financial institutions are asked to sign before target assessments commence.

Target Submission Form for Financial Institutions
Financial institutions that wish to submit targets for validation should download the latest Target
Submission Form and Guidance for financial institutions and fill it out as clearly, completely, and
accurately as possible. It is highly recommended that financial institutions consult the submission form
guidance available within the document to complete the form, including the guidance on target
language and summary of actions to achieve targets, before filling out the form. Additional documents
should be attached only if they are directly related to the information requested.

Pilot Target Validation Service
Under the pilot phase, submissions from the first 20 financial institutions will be assessed free of charge. Each assessment includes a review of an FI’s complete scope 1,2,and 3 targets.

Step 4: Announce the Targets
Once targets are approved by the SBTi, the financial institution will receive an approval e-mail with a
validation report and a certificate. A target publication date will be chosen and suggested to the
financial institution. If the financial institution would like to request a different publication date, it can
coordinate with the SBTi communication team included in the decision e-mail. Please note that financial institutions must publicly communicate their targets six months from approval date or must have their targets revalidated by the SBTi to ensure the targets still meet relevant criteria. A “Welcome Pack” will be sent to the financial institution, which outlines how the targets can be showcased or communicated, how the SBTi logo may be used, and how the SBTi approval may be referenced. Once timing is agreed, the financial institution will be listed as having an “approved target” on our Companies Taking Action webpage as well as on our partners’ websites at We Mean Business and CDP. Financial institutions that are engaging in the UN Global Compact will also be recognized on this website.

Step 5: Target Disclosure
Following approval, financial institutions shall disclose their scope 1 and 2 GHG emissions, progress
against all approved targets in the relevant metric, and actions/strategies taken during the year to
meet scope 3 portfolio targets on an annual basis. Recommendations for reporting include annual
reports, sustainability reports, your company’s website, and disclosure through CDP.

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Hi Chendan -

The “business ambition for 1.5C” commitment letter states on page 3 that, “Due to its unique nature, the SBTi has established a separate process for the financial sector. Please refer to our Standard Commitment Letter for details.”

So I wanted to clarify: should FIs submit the “business ambition for 1.5C” commitment letter, or the “standard” commitment letter?

Thank you!

1 Like
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Hi Julianna,

Thanks for your question - If you want to be 1.5C committed then you can use the BA1.5 C letter, but if you just want a regular SBT commitment then you can do our standard letter.

We are currently developing a foundations paper for Financial Institutions’ net zero targets and you can find more information here How does the Net Zero Standard road test for companies intersects with the SBTi-FI work? Is it useful for the FI to participate in the road-test and will the net-zero for financial institutions be addressed?

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Hi, following up on this thread, I see in the Business Ambition for 1.5C form that companies are automatically joining the UNFCCC Race to Zero when they submit the 1.5C form. However, when I go on the Race to Zero website, I don’t see the Business Ambition for 1.5C as a means of joining Race to Zero for Financial Institutions. Are financial institutions still joining Race to Zero if they submit the Business Ambition for 1.5C form?

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Dear Chendan,

On the FAQ on the website, it is stated that “Companies should ensure that they submit a target to the SBTi for validation within 24 months of making a commitment. The validation process itself can take place after the 24th month.”

This is somewhat contradicting towards your statement above and what is stated in the FI guidance document:

Step 2: Develop a Target
Starting from October 1, 2020, financial institutions will have up to 24 months to complete the following
steps once they sign the commitment letters. Previously committed financial institutions will have 24
months from October 1, 2020 to have their targets approved and announced by SBTi:
(i) Develop science-based targets aligned with the SBTi criteria for financial institutions;
(ii) Submit the targets to the SBTi for a validation; and
(iii) After approval, have the SBTi publish your targets and other related information on the relevant
websites.

We are an asset owner and made our commitment in 2019. Depending on which statement of the above is now valid, it has huge impacts on the target development timeline on our end.

I would be glad for your feedback as soon as possible.

Best regards

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Hi Chendan,

I have a few questions regarding the target submission deadline.

  1. In the SBTi Corporate Manual it states:
    “Once a company has signed the commitment letter, it will have up to 24 months to:
    (i) develop an SBT aligned with the SBTi criteria,
    (ii) submit the target to the SBTi for validation, and
    (iii) after approval, have the SBTi publish the targets publicly.”

And on the SBTi ‘Set a Target’ page it states:
“Once committed, your company has 24 months to submit their targets to the SBTi.”

The two information above conflict each other and I would appreciate it if you could confirm which one is correct.

  1. For financial institutions, is there any room for a grant of extension if for any reason there is a delay in setting the targets? I noticed that DGB Financial Group committed in 2018 and still haven’t set targets but are still up on the website. Does this mean that there is room for a grant of extention?

  2. On the SBTi FAQ page i states:
    “Companies will have 6 months after the first submission is completed to submit the second submission.”

If the first attempt of the target validation fails and there is more than six months left of the 24 month period, does the company still have to resubmit within six months in order to not be charged extra?

Thank you.

1 Like
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  1. Once a company has signed the commitment letter, it will have up to 24 months to (i) develop an SBT aligned with the SBTi criteria, and (ii) submit the target to the SBTi for validation. In addition, approved targets must be published on the SBTi website within 6 months of the approval date. The latter can be counted separately from the 24-month period.

  2. For financial institutions that committed before October 2020, the 24-month period started in October 2020 when the FI Guidance was published. Please see the new Commitment Compliance Policy for an update on extensions. Separately, I would note that DGB has since been validated.

  3. Yes, companies in that situation would need to resubmit within six months.