NBN ISO 14097:2021

This document specifies a general framework, including principles, requirements and guidance for
assessing, measuring, monitoring and reporting on investments and financing activities in relation
to climate change and the transition into a low-carbon economy. The assessment includes the
following items:
— the alignment (or lack thereof) of investment and financing decisions taken by the financier with
low-carbon transition pathways, adaptation pathways, and climate goals;
— the impact of actions through the financier’s investment and lending decisions towards the
achievement of climate goals in the real economy, i.e. mitigation (greenhouse gas emissions) and
adaptation (resilience);
— the risks to owners of financial assets (e.g. private equities, listed stocks, bonds, loans) arising from
climate change.
To support the financier’s assessment of the impact of investment and lending decisions, this document
provides guidance for the financier on how to:
— set targets and determine metrics to be used for tracking progress related to the low-carbon
transition pathways of investees;
— determine low-carbon transition and adaptation trajectories of investees;
— document the causality or linkage between its climate action and its outputs, outcomes and impacts.
This document is applicable to financiers, i.e. investors and lenders. It guides their reporting activities
to the following third parties: shareholders, clients, policymakers, financial supervisory authorities
and non-governmental organizations.