Net Zero Banking Assessment Framework

The Net Zero Banking Assessment Framework has been developed by the Transition Pathway Initiative Global Climate Transition Centre (TPI Centre), in collaboration with the Institutional Investor Group on Climate Change (IIGCC) and Ceres, to assess the preparedness of banks for the low-carbon transition. In 2021, IIGCC launched its ‘banks working group’ following the publication of an ambitious set of Investor Expectations (IIGCC, 2021a). The TPI Centre translated these expectations, using further input from investors, into a set of pilot indicators which comprised a Pilot Framework. This framework was used to assess 27 of the most influential global banks, with the results of these assessments published in a 2022 report, An investor-led framework of pilot indicators to assess banks on the transition to net zero (TPI Centre, 2022). Since then, working with IIGCC and following further rounds of investor consultations, the TPI Centre has updated the Pilot Framework to produce a new Net Zero Banking Assessment Framework, which is presented in this report. The IIGCC has also updated the original investor expectations into a new Net Zero Standard for Banks, which will be published in parallel.