Net zero standard for the Institution

Net Zero for FIs
1

Two questions I would love answers for!

  1. Will the net zero standards for the ‘Institution’ element of a FI be the same as the current corporate net zero standard (i.e. the same requirement of achieving 90% reduction across S1, S2, and S3 (1-14) prior to neutralising?

  2. The emission reduction trajectory for 1.5C is minimum 4.2%. However the new corporate net zero standard says minimum halving of emissions by 2030. Therefore, does the institution need to aim for the halving of emissions by 2030 or can they use the 4.2% by 2030 (which gets them to about 34% reduction) And is this focused on Scope 1 & 2 only or for all scopes???

2

Hi Mike,

  1. While this has not been finalised, we would expect the non-financing parts of a FI (the institution) to be treated as a regular company, and would therefore follow the regular corporate net-zero standard
  2. the net-zero standard mandates a 1.5C ambition for corporate across scope 1+2. Please see section 3.1 in the target validation protocol (https://sciencebasedtargets.org/resources/files/Target-Validation-Protocol.pdf) which sets out how to calculate the minimum ambition across S1+2 and S3 to be aligned with 1.5C pathways.