Standards Development

Scope

This document specifies the requirements that enable financial institutions to develop and maintain processes to respond to and contribute towards the transition to a global net zero and climate resilient economy in a systematic and iterative manner, delivering continual performance improvement.

This document is applicable to any financial institution, regardless of size, type and geographic location, including institutions involved in lending, insurance and investment activities. It also applies to emerging institution types, many of which leverage digital technologies and can be subject to different or bespoke regulatory frameworks (for example decentralized finance platforms and electronic money institutions). It applies to the transition-related aspects of activities, products and services that the institution determines it can either control or influence, using a life cycle perspective.

The scope of the transition planning in this document applies to all institution related financing activities such as those described in 6.3.

This document includes both requirements and related guidance.

This document is harmonized with the requirements of ISO 14060[7] (under development) which describes transition planning requirements for real economy organizations (which make up the client base and portfolios of financial institutions). This includes the treatment of direct (scope1) and indirect energy related (scope 2) emissions requirements.

Claims of conformity to this document are not acceptable unless all its requirements are incorporated into an institution’s transition planning processes and fulfilled without exclusion.

NOTE 1 This document is intended for global application across the full range of financial products and services addressing particular concerns about applicability to EMDEs where there might be constraints in the enabling local regulatory environment and data availability.

NOTE 2 The ISO 55000 series[18] of standards, including detailed guidance in ISO 55002[20], may be useful for financial institution asset management activity, particularly as it relates to alignment of asset management with business objectives, for example those related to transition planning.