SBTi Financial Institutions Net-Zero Standard

Briefing for Canadian Institutional Investors

On 29 April 2026, the Global Advisory Alliance hosted a briefing for Canadian institutional investors on the SBTi Financial Institutions Net-Zero Standard.

The session explored how financial institutions can use SBTi targets to move from net-zero ambition to practical implementation.

Speakers discussed recent SBTi sustainability developments, the new Financial Institutions Net-Zero Standard, and lessons from Beneva and Desjardins Global Asset Management.

The discussion focused on one core question: How can institutional investors set credible climate targets and embed them into real investment decisions?

Watch the session replay

Use this briefing to understand how SBTi targets and SBTi sustainability standards are being applied by financial institutions in practice.

Our panellists:

Catherine Jacques-Brissette - Senior Advisor, Responsible Investment, Desjardins Global Asset Management
Nora Voiculet - GHG Quantification and Management Advisor, Beneva
Peter Uhlenbruch - Financial Institutions Engagement Manager, Science Based Targets initiative
Pendar Ostovar - Head of Financial Institutions, Impact and Engagement, Science Based Targets initiative
Host: Kelly Hirsch, CFA - President, Kaivalya Research

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 implementationA science-based benchmark
+ A way to manage transition riskA 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.
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It covers:
+ Lending Asset owner investing
+ Asset manager investing
+ Insurance underwriting
+ Capital markets activities

This 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 participants

Catherine 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.

This briefing gives you a practical overview of:

What the SBTi is and how its standards are evolving
Why SBTi targets matter for financial institutions
How more than 180 financial institutions have already set validated SBTi targets
How the new SBTi Financial Institutions Net-Zero Standard expands coverage across lending, investing, insurance underwriting and capital markets
How portfolio alignment, climate solutions and transition finance are treated under the standard

Next steps:

Interested in setting or validating SBTi targets? Contact the Science Based Targets initiative to learn more about the Financial Institutions Net-Zero Standard and validation process.

Visit links blow wiht SBTi resources - target setting for financial institutions:

SBTi The Financial Institutions Net-Zero Standard

SBTi FINANCIAL INSTITUTIONS NET-ZERO STANDARD FREQUENTLY ASKED QUESTIONS (FAQs)

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