United Nations Environment Programme Finance Initiative Issues Guidelines for Climate Target Setting for Banks
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Key takeaways:
- On April 21, 2021, the United Nations Environment Programme Finance Initiative (“UNEP FI”) issued Guidelines for Climate Target Setting for Banks (the “Guidelines”), which outline principles for setting targets in line with achieving the temperature goals of the Paris Climate Agreement.
- The Guidelines require the 38 financial institutions that are signatories to UNEP FI’s Collective Commitment to Climate Action, the members of the Net Zero Banking Alliance and any new signatories to establish, implement and monitor targets that satisfy the Guidelines.
- The Guidelines are a voluntary framework that financial institutions, in addition to the initial signatories, are expected to sign and be held accountable against over time.