The financial sector plays a key role in supporting the decarbonization of the real economy by providing financial capital and engaging with portfolio companies. This is why it is essential for all stakeholders to understand the net zero commitments made by financial institutions and assess whether they are credible, ambitious, and being implemented. However, the disparate quality and quantity of commitments and disclosures hinder transparency, accountability, and ultimately, setting attainable targets and operationalizing them.

The Financial Institutions Net Zero Tracker described in this technical note aims to bring more clarity and accountability to the field of net zero commitments made by financial institutions. The tracker is based on a framework that assesses such commitments on their transparency and ambition, implementation, credibility, and consideration of nature and equity issues. The tool is designed to enable financial institutions to explore the details behind net zero commitments as well as leading practices being implemented by their peers. Simultaneously, it empowers other key stakeholders such as civil society organizations and regulators to hold the financial firms accountable on their commitments and push for greater progress.