A new report examining 61 of the world’s largest banks on their management of climate-related risks concludes that despite welcomed statements and announcements by some banks ahead of COP21, few are taking a strategic approach to these potentially game changing developments. There remains a huge divide between banks’ current practices and the financial sector’s potential to support the transition to a low-carbon future.
Some of the biggest banks are not at the table – Of the world’s ten largest banks only two are ranked in the Top 10 for climate management (Bank of China, Citigroup).
A $4.8 trillion opportunity not yet grasped – Significant funding is required for the transition to a low-carbon economy*, yet most banks assessed do not have quantitative targets for increased investment/financing of energy efficiency or renewable energy projects.
The research was conducted by Boston Common Asset Management and backed by a $500bn coalition of 80 global, institutional investors. The banks included the world’s largest underwriters of carbon-intensive industries such as oil & gas, pipelines and coal. Lead investor partners included Australian Ethical Investment (Australia), Bâtirente (Canada), Church of Sweden (Sweden), Cometa Pension Funds (Italy) and Ethos Foundation (Switzerland).
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