Science-Based Targets initiative (SBTi) Launches Consultation for Revised FLAG Standard

The Science-Based Targets initiative (SBTi) has recently kicked off a public consultation to refine its Financial Sector Targets (FLAG) Standard. This move signals a significant step towards enhancing the guidance provided to financial institutions aiming to align their climate goals with the Paris Agreement.

Understanding the FLAG Standard

  • Purpose: The FLAG Standard, launched in 2020, helps financial institutions set science-based targets for their lending and investment portfolios.
  • Scope: It covers banks, asset managers, and insurance companies, encouraging them to reduce their financed emissions in line with a 1.5°C climate trajectory.

Key Aspects of the Consultation

The consultation, open until 31 March 2023, seeks feedback on several aspects, including:

  • Refining the target-setting methodology to better reflect the latest climate science and the evolving financial landscape.
  • Enhancing the guidance on measuring and reporting financed emissions.
  • Strengthening the standard's ambition to accelerate the transition to a net-zero economy.

Your input can help shape the future of the FLAG Standard, ensuring it remains a robust and practical tool for financial institutions committed to combating climate change.

Learn more and participate in the consultation: Science-Based Targets initiative FLAG Standard Consultation