Net Zero Banking Assessment Framework
05 June 2023
Methodological framework developed by the TPI Centre in collaboration with IIGCC and Ceres, to assess the preparedness of banks for the low-carbon transition
The Net Zero Banking Assessment Framework provides a comprehensive, investor-led framework for evaluating how banks are managing the transition to a low-carbon economy and aligning with the Paris Agreement. Developed in collaboration with the Institutional Investor Group on Climate Change (IIGCC) and Ceres, the framework enables investors to assess banks’ preparedness for net zero and their role in financing the transition.
The framework is built around a set of measurable indicators and scoring criteria, using publicly disclosed data to ensure transparency and comparability. It assesses banks across 10 key areas, including net zero commitments, targets, emissions disclosure, decarbonisation strategy, climate governance, and just transition. By capturing banks’ indirect impact through their financing activities and capital allocation, the framework provides a robust tool to evaluate how well financial institutions are supporting global decarbonisation.
Designed as an open-access benchmarking tool, the framework sets a “gold standard” for assessing bank alignment with climate goals and supports investor engagement by identifying progress, gaps, and areas for improvement in the banking sector’s transition to net zero.