New analysis by the World Resources Institute (WRI) has revealed that major banks globally are not on course to meet their climate-related targets, and that their pledges are often less ambitious than they seem at face value. The WRI assessed progress among 25 banks across ten countries on climate-related commitments – including the US ‘big four’: JPMorgan Chase, Wells Fargo, Citibank and Bank of America. Their targets were ranked against 17 indicators. While 16 out of 25 have committed to coal financing phase-out by 2040 or earlier, they are not all taking the necessary steps to get there. All banks have some restriction on finance for new thermal coal capacity, but only seven have completely stopped supporting it. In addition, only four of the assessed banks have a long-term commitment to phase out or down oil and gas financing. In addition, the banks have significant “blind spots”, the WRI said. For example, 18 of them do not have an overarching commitment to deforestation, and the automotive sector is covered in only 15 banks’ climate commitments. Their commitments also vary in their terms, which makes it difficult for investors and other stakeholders to compare or understand their progress. Overall, the current level of ambition displayed by the banks is not high enough, the report argued – noting that high-emitting sectors like shipping and real estate are also barely covered in existing targets.
