The Net-Zero Banking Alliance commitment is underpinned by the bank-led UNEP FI Guidelines for Climate Target Setting for Banks . These guidelines have been developed by signatories of the commitment, a leadership group under the UNEP FI Principles for Responsible Banking. The guidelines outline four principles for target-setting:
1) Banks shall set and publicly disclose long-term and intermediate targets to support meeting the temperature goals of the Paris Agreement.
2) Banks shall establish an emissions baseline and annually measure and report the emissions profile of their lending portfolios and investment activities.
3) Banks shall use widely accepted science-based decarbonisation scenarios to set both long-term and intermediate targets that are aligned with the temperature goals of the Paris Agreement.
4) Banks shall regularly review targets to ensure consistency with current climate science.