Framework for Sustainable Finance Integrity

The Framework for Sustainable Finance Integrity provides a technical set of 'Necessary Action' metrics across three categories—targets and objectives, implementation, and metrics and transparency—to align the financial sector with the 1.5°C goal of the Paris Agreement. It identifies significant gaps between current leading practices of major financial coalitions and the scientific requirements for a viable net zero pathway, particularly regarding short-term emissions targets, the phase-out of all fossil fuel finance, and the integration of social justice and biodiversity into financial mandates.

• To remain on a viable net zero 2050 pathway, financial institutions must set a 2025 target to reduce portfolio scope 1, 2, and 3 emissions by 29% on an absolute level against a 2019 base year.
• Necessary action requires the immediate cessation of finance for new thermal coal projects and a phased exit from existing coal power finance by 2030 in OECD countries and 2040 in developing countries, alongside the elimination of finance and subsidies for all new oil and gas projects.
• Financial institutions should adopt a 'whole institution' approach, fully integrating net zero and Sustainable Development Goal (SDG) commitments into governance, executive compensation, and risk management to avoid the inefficiency of siloing sustainability teams.
• Carbon offsets should only be used as a last resort when no mitigation options exist, prioritizing long-term carbon removal and ensuring credits cause no harm while providing positive co-benefits.
• There is a critical need for financial institutions to lead engagements with counterparties to ensure they commit to 1.5°C-aligned strategies, as the bulk of financial sector emissions are Scope 3 portfolio emissions.
• Sustainable finance volumes must be drastically increased through new business models, with a specific focus on supporting developing economies, which currently receive only one-fifth of clean energy investment despite representing two-thirds of the world's population.
• Financial institutions must align with TCFD and future TNFD disclosure frameworks and ensure that all climate-risk disclosures and finance data are independently verified for accuracy.
• The framework identifies a need for complementary targets by 2025 that specifically address biodiversity, climate equity, pollution, and direct investments in hard-to-abate sectors and developing economies.

APA

Pinko, N., Pastor, A. O., Tonkonogy, B., & Choi, J. (2021). Framework for Sustainable Finance Integrity. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/Framework-for-Sustainable-Finance-Integrity.pdf

Chicago

Pinko, Nicole, Angela Ortega Pastor, Bella Tonkonogy, and June Choi. Framework for Sustainable Finance Integrity. Climate Policy Initiative, 2021. https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/Framework-for-Sustainable-Finance-Integrity.pdf.

Wikipedia

{{cite report |last1=Pinko |first1=Nicole |last2=Pastor |first2=Angela Ortega |last3=Tonkonogy |first3=Bella |last4=Choi |first4=June |title=Framework for Sustainable Finance Integrity |publisher=Climate Policy Initiative |date=October 2021 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/Framework-for-Sustainable-Finance-Integrity.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{pinko2021framework, author = {Pinko, Nicole and Pastor, Angela Ortega and Tonkonogy, Bella and Choi, June}, title = {{Framework for Sustainable Finance Integrity}}, institution = {Climate Policy Initiative}, year = {2021}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2021/10/Framework-for-Sustainable-Finance-Integrity.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }