The Responsible Policy Engagement Benchmarking for Banks shows that despite banks’ public endorsement of the Paris Agreement's goals and pledges to align their lending and investments with net zero emissions by 2050 or even earlier, the banks lobbying practices are not as effective as they could be and are even contradictory at times. And banks have also been slow to take advantage of recent Paris-aligned advocacy opportunities, such as the passing of the Inflation Reduction Act, the largest and most significant climate investment legislation in U.S. history.
100% of the banks publicly acknowledges the reality of climate change and the need for policies to address climate risk and meet U.S. emissions reduction goals.
12 out of 13 of the banks have set net zero targets by 2050
69% of banks have lobbied in favor of Paris-aligned climate policies in the last three years, either individually or as part of coalition.
75% of the banks analyzed lobbied both for and against Paris-aligned policies, highlighting the banks’ conflicting approach to climate policy engagement.
As a lynchpin of the financial system, the largest banks are contributing to climate risk through their financing and lending practices, while also being exposed to that risk. The benchmark analysis recommends that banks advocate for policies that support borrowers in the shift to a decarbonized economy, and balanced regulation that de-risks climate finance, improves disclosure, and positions banks and clients for long-term success.
Recognizing their influence, banks, especially larger institutions, should also take an active role in proactive climate action to positively impact both greenhouse gas trajectories and global economic stability.
The benchmark builds off of the 2022 Responsible Policy Engagement Benchmark of the S&P 100 companies and is part of the work of the Ceres' Ambition 2030 initiative, which focuses on six key sectors, including banking, with the aim of decarbonizing the highest emitting industries by driving greater corporate climate action.