IIGCC’s Banks Working Group was formed in April 2021, following the publication of an ambitious set of investor expectations that was supported by investors and their stewardship representatives with a combined US$11 trillion in assets/advice.
The expectations were sent to 27 banks and members of the working group have since used them to guide climate related engagement with banks. IIGCC now supports investor engagement with a focus list of 20 banks in Europe, Canada and Asia.
Following investor consultation and the publication of a pilot report, IIGCC has worked with the Transition Pathway Initiative Global Climate Transition Centre (TPI Centre) to refine and evolve the investor expectations into a Net Zero Standard for Banks. In parallel, the TPI Centre in consultation with IIGCC, has developed a Net Zero Banking Assessment Framework for Banks which assesses banks for alignment against 72 indicators based on expectations in the Standard.
The Standard is built around the 10 areas: bank commitments; targets; exposure and emissions disclosure; emissions performance; decarbonisation strategy; climate solutions; policy engagement (lobbying); climate governance; just transition; and annual reporting and accounting disclosures; and complements the Net Zero Investment Framework (NZIF).
As publicly available resources, the Standard and Net Zero Banking Framework may be used by all investors to support engagement with banks on the transition to net zero.
Read the following materials:
The following IIGCC members are members of the IIGCC Net Zero Banks Working Group, as of June 2023. These members are either involved in bank engagements and/or contribute to research on how banks might transition to net zero.
Disclaimer
All written materials, communications, surveys and initiatives undertaken by IIGCC are designed solely to support investors in understanding risks and opportunities associated with climate change and take action to address them. Our work is conducted in accordance with all relevant laws, legislation, rules and regulations including data protection, competition laws and acting in concert rules. Participants in any initiative will not be asked for and must not disclose or exchange strategic or competitively sensitive information or conduct themselves in any way that could restrict competition between members or their investment companies or result in members or the investment companies acting in concert. These materials serve as a guidance only and must not be used for competing companies to reach anticompetitive agreements. IIGCC’s materials and services to members do not include financial, legal or investment advice. The IIGCC and its members are committed to complying with all laws and regulations that apply to them, including antitrust and other regulatory laws and regulations and the restrictions on information exchange and other collaborative engagement that said laws and regulations impose. On this basis, while the information and suggested disclosures listed in this Guidance would assist members with their assessments, IIGCC recognises that companies cannot disclose information that is not publicly available and is considered to be competitively sensitive information by such company. IIGCC’s materials and services to members do not include financial, legal or investment advice.
This material was developed in collaboration with a number of IIGCC members but does not represent the views of all members, either individually or collectively.
