SIST EN ISO 14097:2026

Overview

SIST EN ISO 14097:2026 (ISO 14097:2021) provides a structured framework for the management of greenhouse gases in investment and financing activities related to climate change. Developed by the Slovenian Institute for Standardization (SIST), this international standard sets out principles, requirements, and guidance to help financiers - including investors and lenders - assess, monitor, and report the climate-related impact, risks, and opportunities associated with their financial decisions.

The standard aims to support the transition to a low-carbon, climate-resilient economy by aligning financial flows with climate goals. It is designed for organizations seeking to establish transparent, consistent, and comprehensive processes for integrating climate considerations into investment and lending decisions, in line with global commitments like the Paris Agreement.

Key Topics

• Assessment of Climate Alignment
  Guidance on evaluating how investment and financing decisions align (or do not align) with low-carbon and adaptation pathways, and the achievement of international climate goals.

• Impact Measurement and Tracking
  Principles for measuring and documenting the real-economy outcomes of financial activities, including greenhouse gas (GHG) mitigation and adaptation/resilience enhancements.

• Climate Change Risk Management
  Requirements for identifying, assessing, and reporting risks to financial asset owners resulting from climate change, such as physical and transition risks.

• Target Setting and Metrics
  Support in setting climate targets, selecting KPIs and metrics, and tracking progress for low-carbon investment and adaptation strategies.

• Monitoring and Reporting
  Framework for monitoring climate impacts, documenting outputs and outcomes, and preparing transparent reports for key stakeholders (e.g., shareholders, regulators, clients, NGOs).

• Theory of Change Approach
  Description of causal pathways linking investment actions with intended climate outcomes, enabling financiers to clarify and communicate the impacts of their strategies.

Applications

• Financial Institutions
  Helps banks, asset managers, pension funds, insurance companies, and other financiers integrate climate-related criteria into their investment, lending, and risk management processes.

• Corporate Sustainability Reporting
  Supports compliance with global standards and evolving regulatory expectations for environmental, social, and governance (ESG) disclosure, including the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.

• Portfolio Management
  Enables portfolio managers to analyze the climate transition and adaptation trajectories of investees, and substantiate the alignment of assets with science-based climate targets.

• Policy Development
  Provides a harmonized methodology for public and private sector organizations to assess finance flows and their effectiveness in achieving climate mitigation and resilience.

• Stakeholder Communication
  Facilitates transparent engagement and reporting to shareholders, clients, policymakers, financial supervisory authorities, and civil society.

Related Standards

• ISO 14064 – Greenhouse gases – Requirements for quantification and reporting of GHG emissions and removals
• ISO 14080 – Framework and principles for methodologies on climate actions and their impact
• ISO 14090 – Adaptation to climate change – Principles, requirements, and guidelines
• TCFD Recommendations – Task Force on Climate-related Financial Disclosures
• EU Non-Financial Reporting Directive – Sustainability and climate-related reporting frameworks

Practical Value

Implementing SIST EN ISO 14097:2026 allows financiers to:

• Demonstrate leadership in sustainable finance and climate risk management.
• Ensure investments are future-proofed against climate risks and aligned with evolving regulatory frameworks.
• Build credibility and trust with stakeholders through accurate, verifiable, and transparent climate impact reporting.
• Guide the allocation of capital toward projects and companies driving the transition to a low-carbon economy, thus supporting global climate goals.

By integrating this standard, financial organizations contribute directly to the achievement of the Paris Agreement objectives and the broader global sustainability agenda, while managing the risks and capturing the opportunities associated with climate change.