3 June 2026 — A landmark international framework designed to help financial institutions carry out credible, transparent and high‑integrity net zero transition planning has been published by BSI to encourage banks and financial institutions to close the gap between climate ambition and action.
Net Zero Transition Planning for Financial Institutions (ISO 32212) specifies requirements and provides recommendations for strategic net zero transition planning by financial institutions. It provides practical guidance for banks, insurers, asset managers, asset owners and other financial institutions on how to establish robust governance, policies, systems and controls for effective transition planning to drive their financing decisions – that is, their loan books, investment portfolios, or underwriting activities. It is intended to strengthen trust, consistency and accountability across the global financial system.
The standard brings together content from a wealth of resources, from the likes of the Transition Plan Taskforce, the Glasgow Financial Alliance for Net Zero, and the Institutional Investors Group on Climate Change, into a single recognisable and certifiable standard. It was developed with input from a broad coalition of organizations, including representatives of finance sector organisations and experts from the 170+ government-recognized national standards bodies from around the world. Extensive feedback was also provided through global roundtables and wider industry engagement, involving finance sector practitioners, central banks, regulators and international organizations including Principles for Responsible Investment, International Monetary Fund and Network for Greening the Financial System.
It recognises the important enabling role of finance in the climate transition and the critical role financial institutions can play in mobilizing capital to support clients and investees in their transition to a net zero, climate-resilient global economy. This reflects a wider demand from businesses for practical support, with BSI’s recent research finding that 91% of businesses want assistance to accelerate their transition, with a particular focus on financial incentives and practical, skills-based guidance.
Transition planning is increasingly seen as a key element of the climate transition, embedding appropriate processes within business processes and strategy and thereby supporting the disclosure of credible transition plans. Questions remain as to how institutions have set their transition planning objectives targets and how rigorously these have been integrated into their financing decisions and engagement activity. ISO 32212 fills this gap, providing financial institutions with a common, globally applicable framework to embed transition planning into financing decisions, risk management and governance. By aligning with the standard, institutions can demonstrate a credible and consistent approach to transition planning and help establish a common global benchmark to accelerate the mobilization of capital towards a net zero and climate-resilient economy.
Scott Steedman, Director-General, Standards at BSI, said: “Financial institutions have a pivotal role in the transition to a net zero and climate-resilient economy. ISO’s new international standard, ISO 32212, is a best practice tool developed with input from leading organizations across the financial sector through national delegations from around the world, that will be globally adopted by countries throughout the ISO membership. The framework will help institutions move from ambition to implementation through transparent and credible transition planning. We encourage financial institutions worldwide to pick up the standard, benefit their businesses and support the global adoption of credible transition planning.
Developed through ISO’s unique global governance system, ISO 32212 is the latest business best practice document to be added to the catalogue of international ISO and IEC standards that drive performance improvement and competitive advantage. By strengthening consistency and accountability across markets, ISO 32212 will help build trust, mobilize capital more effectively and accelerate progress towards a fair society and a sustainable world.”
The standard includes requirements and guidance on:
• Assessing climate-related risks, opportunities and current portfolio exposures
• Setting transition planning objectives, targets and accompanying metrics
• Integrating transition planning into financing decisions and engagement strategies
• Internal communication and external reporting
• Performance review, internal audit, data quality and continuous improvement
• Governance, leadership accountability, resourcing and documentation
The standard is relevant to institutions at all stages of the net zero journey, whether they are in the early stages, responding to the transition, or enhancing existing approaches. Financial institutions are encouraged to align with ISO 32212 and make credible net zero transition planning the global norm – closing the gap between ambition and action and accelerate progress towards a climate-resilient economy.
Launch event
BSI will mark the publication of ISO 32212 at a global launch event on 4 June at Mansion House in London, bringing together senior leaders from finance, regulation, policy and standards to discuss the role transition planning can play in strengthening trust, consistency and accountability across the financial system.
ISO 32212:2026 - Net Zero Transition Planning for Financial Institutions is available from the BSI website. For further information, visit here.
