The publication of ISO 32212 comes as several major banks have scaled back climate commitments.
The standard, Net Zero Transition Planning for Financial Institutions (ISO 32212), sets out requirements and recommendations for strategic transition planning across the financial sector.
It provides guidance for banks, insurers, asset managers, asset owners and other financial institutions on establishing governance structures, policies, systems and controls that can support effective transition planning and influence financing decisions.
BSI said the framework is intended to strengthen trust, consistency and accountability across the global financial system by providing a globally applicable framework covering climate-related risk and opportunity assessments, target setting, financing and engagement strategies, governance, reporting, performance reviews, internal audits, data quality and continuous improvement.
BSI said institutions at any stage of their net-zero journey can use the framework, whether they are developing initial plans or strengthening existing approaches.
Bringing existing guidance into a single standard
ISO 32212 consolidates guidance from a range of existing initiatives, including the Transition Plan Taskforce, the Glasgow Financial Alliance for Net Zero and the Institutional Investors Group on Climate Change.
The standard was developed with input from finance sector organisations and experts representing more than 170 government-recognised national standards bodies worldwide.
Feedback was also gathered through global roundtables and industry consultations involving financial practitioners, central banks, regulators and international organisations such as the Principles for Responsible Investment, the International Monetary Fund and the Network for Greening the Financial System.
The launch comes amid growing demand for practical transition support. According to recent BSI research, 91% of businesses said they wanted assistance to accelerate their transition efforts, particularly through financial incentives and practical, skills-based guidance.
Transition planning has become an increasingly important component of climate strategies, helping organisations integrate climate objectives into business operations and support the disclosure of credible transition plans.
However, questions have persisted over how financial institutions set transition objectives, measure progress and incorporate climate targets into lending, investment and engagement decisions.
The publication of ISO 32212 comes as several major banks have scaled back climate commitments or withdrawn from industry climate alliances.
Standard arrives amid retreat from climate alliances
The shift accelerated following the election victory of US President Donald Trump in 2024 and a broader political backlash against environmental, social and governance (ESG) initiatives in the US.
JPMorgan Chase, Goldman Sachs, Wells Fargo, Citi, Bank of America and Morgan Stanley all exited the UN-backed Net-Zero Banking Alliance (NZBA) amid increasing scrutiny from Republican lawmakers and criticism of climate-focused finance.
Britain’s HSBC and Canada’s Bank of Montreal later left the alliance, followed by Switzerland’s UBS. The NZBA ceased operations at the end of last year.
Since then, several major lenders have revised their climate ambitions. HSBC, Wells Fargo and NatWest have all weakened aspects of their net-zero or climate-related goals.
