Target Setting Guidance

Last updated: 2022

The Principles for Responsible Banking (PRB) have released a set of target-setting guidance on topics such as Resource Efficiency & Circular Economy, Biodiversity, Financial Health & Inclusion, Climate, and Gender Equality.

Use this resource to:

  • Set Targets: Set targets in line with the requirements of the UN Principles for Responsible Banking.

CDP Financial Services Disclosure System

Last updated: 2021

Tools for investors, companies, cities, states and regions to manage their environmental impacts. The CDP Financial Services Disclosure System allows for a baseline assessment of climate-related risks, opportunities and impacts in financing portfolios; and of how banks, asset owners, asset managers and insurance companies are preparing for the net-zero carbon transition.

Sustainable Finance Disclosure Regulation (SFDR)

Last updated: 2019

Regulation that sets out sustainability disclosure requirements for financial market participants within the EU. It includes disclosure requirements for firm-level as well as for investment products. Disclosure requirements cover mitigation of negative impacts termed ‘principal adverse impacts’ and performance on sustainable investment objectives.

Use this resource to:

  • Disclose: Review regulation for disclosure requirements for financial market participants in the EU

TEG Interim Report on EU Climate Benchmarks and Benchmarks’ ESG Disclosures

Last updated: 2019

The EU Climate Transition Benchmarks (CTB) and Paris-Aligned Benchmarks (PAB) are examples of portfolio impact benchmarking techniques being employed in regulation. The regulation sets out requirements for index providers to construct investable indexes that are on a 7% decarbonisation trajectory.

Use this resource to:

  • Assess: Review EU’s proposed approach for establishing benchmarks, which incorporates greenhouse gas emissions at portfolio level. A climate benchmark serves as an investment performance benchmark for GHG emission-related strategies; an engagement tool and a policy benchmark to help guide strategic asset allocation.

Principles for Responsible Banking

Last updated: 2019

Principles for Responsible Banking (PRB) are designed to ensure that signatory banks’ strategy and practice align with the vision society has set out in the Sustainable Development Goals and the Paris Climate Agreement.

Use this resource to:

  • Strategy: Commit to aligning the bank’s activities and portfolios to global goals, namely the Sustainable Development Goals (SDGs) and the Paris Agreements, by embedding sustainability at the strategic, portfolio and transactional levels, across all business areas.  This initiative involves a fee for participation and requires periodic disclosure of progress made towards enforcing the Principles.
  • Disclose: Use the PRB Assurance Guidelines to assure adherence to the Principles.

Principles for Positive Impact Finance

Last updated: 2017

Principles for financial institutions and their public and private stakeholders to transition to an impact-based economy that can deliver on people’s needs and aspirations within planetary boundaries.

For organisations

Use this resource to:

  • Governance, strategy and management approach: Use as a reference for key definitions and requirements for the delivery and assessment of positive impact finance.

For investors and financial institutions

Use this resource to:

  • Strategy: Reference key definitions and recommended practices when embedding impact management into investment strategy, governance and management approach.

Financial Sector Science-Based Target Guidance

Last updated: 2021

Guidance for setting science based targets related to climate, specifically for financial institutions.

Use this resource to:

  • Set Targets: Set a portfolio target for Greenhouse Gas Emissions

Corporate Impact Analysis Tool

Last updated: 2021

Tool to help banks and investors understand the actual and potential impacts of their clients and investee companies, as part of their impact management strategies and processes.

For organisations

Use this resource to:

  • Set and revise objectives: Financial institutions can use the tool to co-define relevant and meaningful objectives for their clients and/or investee companies. It provides an impact analysis and management workflow that starts from the identification of impact associations and needs, facilitates the collection and assessment of impact performance data, and accordingly enables an action plan and specific objectives to be set and monitored over time.
  • Identify sustainability topics: Use the tool to identify impact areas and topics (economic, environmental and social) associated with corporate clients and/or investee companies, based on an objective review (cartography) of the company’s sectoral and geographic breakdown. The tool contains collated research on the association between sectors (ISIC – International Standard Industrial classification) and 22 Impact Areas that cover all the SDGs, as well as a framework to enable a contextualisation of impact associations vis-à-vis the impact needs present in the company’s country(ies) of operation.
  • Measure sustainability performance: Use the Indicator Library embedded within the tool to review existing metrics for impact measurement. UNEP-FI has collated metrics from reporting standards and frameworks (GRI, SASB, CDP, TCFD), impact investor and development bank resources (IRIS+ and HIPSO), government taxonomies (EU Adaptation and Mitigation Taxonomies) and other sources to support indicator selection and interoperability between frameworks. This indicator library primarily supports use of the tool, but is also a useful standalone resource.

For investors and financial institutions

Use this resource to:

  • Identify: Understand the impact areas and topics associated with a corporate client/investee based on company type, sector and context; identify the company’s most significant impact areas.
  • Assess: Assess the company’s current practice and performance vis-à-vis its most significant impact areas, by combining the tool’s ‘identification’ outputs with additional data; determine the company’s overall ‘impact status’ as a basis for engagement.

Portfolio Impact Analysis Tool for Banks

Last updated: 2021

Tool to help banks and investors holistically understand and manage the actual and potential impacts of their portfolios.

Use this resource to:

  • Identify: Understand the impact areas and topics associated to your bank’s portfolio based on portfolio composition and context, identify the bank’s most significant impact areas.
  • Assess: Assess your bank’s current practice and performance vis a vis its most significant impact areas by combining the tools ‘Identification’ outputs with additional data; use the assessment as a basis for target-setting and to define the bank’s action plan.