SBTi Financial Institutions Net-Zero Standard

Key Takeaways

The SBTi is no longer only about long-term commitments. The discussion showed how SBTi targets can help financial institutions translate net-zero ambition into measurable near-term action.

1. Financial institutions need a credible framework

SBTi sustainability standards give financial institutions a shared reference point.
+ They help investors avoid vague claims, reduce greenwashing risk and compare progress more consistently across peers.
+ For Beneva, SBTi provided: A structure for net-zero implementation and a science-based benchmark
+ A way to manage transition risk - and clearer basis for engaging external asset managers

2. The new standard broadens the scope

The SBTi Financial Institutions Net-Zero Standard goes beyond the earlier near-term framework.It covers:+ Lending Asset owner investing+ Asset manager investing+ Insurance underwriting+ Capital markets activitiesThis makes it more relevant for complex financial institutions with multiple business lines.

3. Data remains one of the biggest barriers

Both Beneva and Desjardins highlighted data as a major challenge. Portfolio emissions data can be incomplete, inconsistent or delayed. External managers may not always provide the information asset owners need. That makes implementation harder. But the message was clear: Data limitations should not stop action.They should shape a practical, iterative approach.

4. Portfolio decarbonisation needs several levers

Desjardins Global Asset Management shared how portfolio decarbonisation works in practice.Key levers include:+ ESG integrationPositive and negative screening+ Stewardship and active ownership+ Proxy voting+ Thematic investing+ Collaboration with investors, policymakers and market participantsCatherine Jacques-Brissette stressed that these tools work best when combined. No single lever is enough.

5. Stewardship remains critical

The session made clear that divestment alone does not solve real-world emissions. Investors can use engagement and voting to push companies towards credible transition plans, stronger governance and science-based emissions reduction targets.This is especially important where portfolio decarbonisation must align with fiduciary duty, risk-return expectations and diversification requirements.

6. Climate risk is financial risk

The Canadian context featured strongly in the discussion. Speakers addressed regulatory uncertainty, anti-ESG pressure and climate disclosure gaps. But the core point remained clear: For insurers, asset owners and asset managers, climate risk is financially material. Physical risk, transition risk and reputational risk all affect long-term value.