The climate targets of Europe’s 20 largest publicly listed banks are “not fit for purpose”, according to research by NGO ShareAction. The report branded the banks’ targets as “too narrow”, noting that they lack clear and robust methodologies, and sufficient alignment with each other. Under these current commitments, a successful shift of finance from fossil fuels to clean energy and green infrastructure at the speed and scale the Paris Agreement requires is “unlikely”, ShareAction said. The analysis showed that 18 out of 20 banks, including HSBC, Barclays and BNP Paribas, are off-track to meet the US$10 to US$1 ratio of green investment to fossil fuels investment needed by 2030 needed to meet the International Energy Agency’s Net Zero Emissions Scenario. Last month, reports from US-based environmental non-profit Sierra Club and the Transition Pathway Initiative Centre also found large banks were taking insufficient action to meet climate targets. “Europe’s biggest banks have a vital role to play in financing the transition to a low-carbon economy, such as scaling up renewable energy, making real estate energy efficient and supporting important industries to decarbonise,” said Xavier Lerin, Senior Research Manager at ShareAction. “We urgently need banks to set more ambitious and coherent targets that transparently map out how they will live up to their commitment to finance the renewable power, green infrastructure and technologies needed to protect people and our economies.” ShareAction will be submitting recommendations to the CEO of each assessed bank on how they can set effective climate targets to reach their net zero goal, such as by setting sector-specific, science-based targets.
🚨Our NEW REPORT finds banks' climate targets are falling short of what is needed to meet net zero
We’re calling on banks set ambitious, transparent & coherent green finance targets to scale up much-needed renewable power like wind turbines & solar📣https://t.co/IBue666blW pic.twitter.com/RAqLRRk5h7
— ShareAction (@ShareAction) November 5, 2024
