A new net-zero transition planning standard aimed at ensuring financial institutions follow through on their climate commitments is being developed by the British Standards Institution (BSI) and the International Organisation for Standardisation (ISO).
“Financial institutions have a pivotal role to play in the transition to a low-carbon economy, but without a consistent framework, organisations could face uncertainty in transition planning, undermining market confidence and slowing progress,” BSI stated.
Unlike other initiatives, such as the International Sustainability Standards Board (ISSB), the Glasgow Financial Alliance for Net Zero (GFANZ) and the Transition Plan Taskforce (TPT), which focus mainly on disclosure, the new standard – dubbed Net Zero Transition Planning for Financial Institutions (ISO 32212) – emphasises the process and governance behind net-zero transition plans.
The ISO Sustainable Finance Committee has announced the opening of a public consultation for the standard, with comments being accepted from banks, asset managers, pension funds, and other financial entities until 12 September.
Scott Steedman, director-general, standards, at BSI, said: “The financial services sector is integral to accelerating progress towards a low-carbon economy and a sustainable world. A globally recognised framework that goes beyond disclosure and prioritises robust transition planning can help institutions drive meaningful climate action within the financial sector.”
He added: “This standard is designed to provide a clear path for managing climate risks, unlocking transition-related opportunities, and scaling credible net-zero strategies. We urge stakeholders across finance and policy to review the draft and contribute their feedback during the public consultation.”
“This standard is designed to provide a clear path for managing climate risks, unlocking transition-related opportunities, and scaling credible net-zero strategies”
Scott Steedman, director-general, standards, at BSI
According to BSI, the standard aims to deliver a significant step on aligning financial institutions with global climate goals, including the Paris Agreement, by providing a globally applicable, credible framework.
As such, the new framework could become a tool to help investors identify institutions that are committed to, capable of, delivering sustainable, low-carbon investment outcomes.
Rather than duplicating or displacing existing initiatives – such as those led by GFANZ, TPT, the G20, UNEP FI, or the OECD – ISO 32212 aligns with and enhances them, embedding their insights within the global quality infrastructure to promote coherence and accountability across the financial system, BSI stated.
Last year, the ISO began developing a separate international standard on net zero, which aims to provide global guidance to companies and countries for net-zero transitions and guard against greenwashing.
BSI is hosting roundtables for finance policy groups on 9 July 2025 and for central banks and financial regulators on 9 and 10 July 2025. It has also published a feature blog exploring the implications of the standard.
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