Banks told theyre lagging on response to climate change risks
15 February 2018 | Mitigation
Fewer than half the world’s biggest banks are doing enough to forestall climate change that poses risks to their markets and economies.
Scientists predict higher frequencies of floods, famines and superstorms unless the world keeps temperature rises well below 2 degrees Celsius (3.6 degrees Fahrenheit) this century.
Just under half of the group have put in place climate risk assessments and 61 percent haven’t restricted the financing of coal. The global banking sector provided $600 billion in financing for the top 120 coal plant developers between 2014 and September 2017, according to the report.
Could Do Better?
Score based on the extent of a company's public environmental disclosure, out of 100
Boston Common called for all banks to disclose climate risk in line with the Taskforce on Climate-related Financial Disclosures. They should also set clear targets to promote low carbon products and publish strategy reports aligned with the Paris Agreement, according to the recommendations.
About $12 trillion of renewable energy investments are needed by 2030 as countries that signed the Paris Agreement transition to low-carbon economies.
Most banks have already taken steps to implement at least some internal governance for climate issues, along with disclosure on low-carbon products and services.
The TFCD was set up by Bank of England Governor Mark Carney in his role as head of the Financial Stability Board. In December 2015, Carney named Michael Bloomberg, founder and majority owner of Bloomberg News and its parent company Bloomberg LP, to lead the panel, which also includes executives and advisers from a variety of industries around the world.
Of the 59 banks surveyed, 46 responded and 12 banks were analyzed using publicly-available information.