SBTi: Near-Term Criteria for financial institutions to stay with no end date

What happened

In an announcement on 8 October 2026, SBTi said that the Financial Institutions Near-Term Criteria and the Financial Institutions Net-Zero Standard (FINZ) will remain in use with no fixed end date. In earlier statements, SBTi had said it would assess the future of the Near-Term Criteria in 2027. The new decision removes that uncertainty.

SBTi cites feedback from companies and alignment with the overall framework as its reasons. The Corporate Net-Zero Standard V2.0, published in June 2026, also gives companies the option of setting near-term targets only; keeping the same option for financial institutions fits this structure.

Other points in the announcement:

• Targets of institutions that set them under the Near-Term Criteria remain valid until the end of the target cycle.
• Targets set under these criteria are not automatically transferred to FINZ. An institution that wants a validated net-zero target must update its targets in line with FINZ requirements.
• The Mandatory Five-Year Review Guidance has been updated to clarify the target cycle review timeline for financial institutions.

According to SBTi, more than 180 financial institutions have set validated science-based targets to date, about a third of them banks.

Who is affected

Turkish banks, insurers, portfolio management companies and participation (Islamic) banks that have made an SBTi commitment or have validated targets. The update to the five-year review guidance is also important for institutions approaching the end of their first target cycle.

The real economy is affected indirectly. A bank that chooses a portfolio coverage target under the Near-Term Criteria needs its borrowers to set SBTi-approved targets in order to meet its own target. So requests to clients for targets and emissions data will not decrease; they may become even more pronounced now that the choice of method is clearer.

What companies should do

• Financial institutions: answer the question of near-term-only targets versus a net-zero target under FINZ without time pressure, based on portfolio data quality and strategy.
• Institutions with validated targets: check when your target cycle ends and the updated five-year review timeline, and schedule preparation for revalidation.
• Those considering a move to FINZ: review your financed emissions inventory against FINZ requirements, bearing in mind that near-term targets are not transferred automatically.
• Real economy companies: find out which route your bank has chosen, and be ready for requests for SBTi targets and verified inventories in lending processes.

Alalëa supports financial institutions with portfolio targets and real economy companies with the target set they present to their banks: SBTi target setting.