SBTi extended the period in which banks can choose between its Near-Term Criteria and FINZ from December 2026 to at least the end of July 2027. What changed and what did not.
The Science Based Targets initiative has moved the date most people quote for FINZ. Financial institutions can now choose between SBTi’s Financial Institutions Near-Term Criteria and the Financial Institutions Net-Zero Standard (FINZ) version 1.0, July 2025, until at least the end of July 2027.
That window used to run until December 2026. SBTi extended it in February 2026.
What changed
When FINZ was published in July 2025, SBTi set a transition period “until at least December 2026” in which both frameworks were available for target validation. After that, new targets were expected to be set under FINZ.
In February 2026 SBTi extended that minimum period to July 2027. Its stated reason was to align with the extension already given to institutions holding near-term-only commitments, so they had time to assess both frameworks properly before choosing.
Two dates now matter:
- End of July 2027, at the earliest: the end of the period in which either framework can be used.
- 31 July 2027: the submission deadline for institutions with near-term-only commitments that took the finance commitment extension before FINZ was published.
What did not change
The standard itself. FINZ version 1.0 is the same document it was in July 2025, and its substance is untouched by the new timetable. That includes the part most likely to matter to a Gulf bank: a fossil fuel transparency policy, an immediate end to project finance for new fossil fuel projects, and an end to financing oil and gas companies engaged in expansion by 2030. We cover those in what FINZ asks of banks on fossil fuel finance.
The choice inside FINZ between a financed emissions focus and a customer alignment focus is also unchanged. See financed emissions or customer alignment.
Read “at least” literally
SBTi’s wording is “until at least the end of July 2027”. It has not said FINZ becomes the only route on 1 August 2027. It describes the period as one in which it will run a monitoring, evaluation and learning phase to decide next steps.
So there are two mistakes to avoid. One is quoting December 2026, which is simply out of date. The other is treating August 2027 as a confirmed cut-over. The sensible planning assumption is that FINZ becomes the route for new targets at some point after July 2027, with the exact date still to be confirmed by SBTi.
Does the extra time change the plan?
Less than it looks. Target setting under either framework rests on a financed emissions baseline, normally built to the PCAF methodology. That baseline typically takes a bank three to nine months, depending on data availability and the asset classes in scope, and it is the longest single task in the programme.
Seven more months is useful. It does not make the baseline shorter, and it does not change the order of work:
- Start the financed emissions baseline. It is the schedule either way.
- Test the FINZ fossil fuel commitments against your book before choosing a framework.
- Choose between the Near-Term Criteria and FINZ deliberately, while the choice is still open, and record why.
- Check the SBTi website again before submitting. This timetable has moved once already.
Why this article exists
Our earlier article, SBTi FINZ: the December 2026 deadline facing banks, was written on 29 August 2026 and gives December 2026. That date had already been replaced when it was written. This article sets out the current position; the earlier one carries a note pointing here.
How ESGweise helps
We build financed emissions baselines to the PCAF methodology and take banks through the framework choice, target setting and transition planning as one programme. See our ESG strategy and climate risk and transition planning services, and our banking and financial services practice.
To work out a realistic July 2027 timetable against your own data, talk to us.
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Frequently asked questions
What is the SBTi FINZ deadline for financial institutions?
There is no single FINZ submission deadline in the way it was often described. SBTi's position, updated in February 2026, is that financial institutions may choose whether to set targets using the Financial Institutions Near-Term Criteria or the Financial Institutions Net-Zero Standard (FINZ) until at least the end of July 2027. Institutions with near-term-only commitments that sought the finance commitment extension before FINZ was published have until 31 July 2027 to submit targets for assessment.
Was the FINZ deadline December 2026?
It was. SBTi originally set a transition period until at least December 2026, during which both frameworks were available. In February 2026 SBTi extended that minimum period to July 2027, to give institutions with existing near-term commitments time to assess which framework to use. Any source still quoting December 2026 predates that change.
What happens after July 2027?
SBTi has not fixed it. The window runs until the end of July 2027 at the earliest, during which SBTi says it will run a monitoring, evaluation and learning phase to inform next steps. A bank should plan on FINZ becoming the route for new targets, but should not treat August 2027 as a confirmed switch date until SBTi publishes one.
Should a bank wait now that the deadline has moved?
The extra seven months do not change the longest task. Target setting under either framework depends on a financed emissions baseline, usually built to the PCAF methodology, which typically takes a bank three to nine months. A bank that has not started measuring is still on a tight timetable for July 2027.