- Provides a universally applicable set of guardrails to articulate necessary action around targets and objectives, implementation, and metrics and transparency
- Aims to ensure the integrity and accountability of pledges and initiatives, as well cross-sector coherence and impact on net zero and sustainability
- Based on the most recent climate science to emphasize the level of ambition necessary to meet global climate and sustainability targets
28 October 2021, London—Today, public and private finance leaders released the Framework for Sustainable Finance Integrity (the “Framework”).
Building on the work of existing initiatives, the Framework provides a universal set of sustainability guardrails across the financial system, public and private, to foster ambition and deliver meaningful sustainability and net zero results. It is the only guidance that applies equally across all financial actor types, providing one set of metrics to articulate necessary action around setting targets and objectives, implementing those goals, and reporting metrics transparently.
Such a universal set of guidance is especially needed as actors across the financial ecosystem—governments, central banks and financial supervisors, development finance institutions, commercial banks, asset owners, asset managers, and insurers—have formed coalitions and initiatives to promote sustainable finance and reaffirm commitments in the wake of COVID-19 and in the lead up to COP26.
While welcome, this rapid proliferation has exposed missing links. The Framework aims to understand and ensure the integrity and accountability of the many individual pledges and sectoral initiatives, as well as coordinate across silos of public and private financial actors to ensure coherence and impact on net zero and sustainability, with a focus on sustainability and social justice beyond climate mitigation.
The Framework has been developed based on a rigorous, technical evaluation of existing initiatives, and critical actions identified by civil society. It reflects the most recent scientific analysis, developed via current climate science, net zero trajectories, and analysis undertaken by sectoral experts. The Framework’s metrics are aligned with the level of ambition necessary to meet global climate and sustainability targets.
The document was reviewed and guided by an Advisory Council of leading personnel and organizations from each segment of the financial ecosystem, including insurers, commercial banks, development banks, asset managers, civil society, and government representatives across Asia, Africa, Europe and the Americas.
“As we build momentum on mainstreaming sustainability into the financial sector, we need to make sure efforts are not siloed so that the whole is equal to the sum of its parts,” said Barbara Buchner, Global Managing Director of Climate Policy Initiative. “This Framework brings together all the existing efforts and provides the necessary guidance to ensure that happens.”
The full report also includes analysis of the current leading practices of key net zero and sustainability coalitions in the financial sector, such as Coalition of Finance Ministers for Climate Action (Helsinki Principles), International Development Finance Club, the Net Zero Asset Owner Alliance and the Net Zero Banking Alliance.
The full report is available for download: Framework for Sustainable Finance Integrity
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Rob Kahn, Head of Communications