Net Zero Banking Assessment Framework methodology note - version 1.2

The Net Zero Banking Assessment Framework methodology note - version 1.2 outlines how banks are evaluated on their management of the transition to a low-carbon economy. This is the third iteration of the methodology, following version 1.0 (December 2024) and version 1.1 (December 2025). Version 1.2 incorporates changes arising from the TPI Centre's assessment and feedback processes, including proposals set out in the Banking Tool: 2025 consultation report and changes announced in the May 2026 research update. The research update also provides a mapping between versions 1.1 and 1.2 of the framework.

Developed in consultation with the Institutional Investors Group on Climate Change (IIGCC) and Ceres, the framework assesses banks across nine areas: net zero commitments; sectoral targets; exposure and emissions disclosure; decarbonisation strategy; climate solutions; climate policy engagement; climate governance; just transition; and annual reporting, accounting and audits. The framework is based solely on publicly available bank disclosures and prioritises objectively assessable indicators to support transparency and comparability across banks.