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Report

Banking on a low-carbon future II

This ranking examines 20 of the largest European banks, based on their responses to climate change. It builds on the first edition of ShareAction banking survey in December 2017 which looked at the 15 largest European banks. Banks can use this report to benchmark their individual performance and inform areas for improvement. Examples of leading practice have been included throughout the report to help raise awareness of how leading peers are responding to various climate-related issues.

Key points
  • Finding 1 – Banks’ overall performance on climate change is still insufficient.
  • Finding 2 – Despite relatively strong governance processes and strategies on climate change,
    climate-related risks are not yet adequately managed.
  • Finding 3 – It is possible for a bank to drastically improve its climate-related performance within a
    short timeframe.
  • Finding 4 – All banks acknowledge the relevance of climate-related risks, but integration
    into traditional types of risk assessment is still incomplete.
  • Finding 5 – The use of scenario analysis is now widespread, but the range of scenarios
    used and application across portfolios is still limited.
  • Finding 6 – Disclosures and target-setting in relation to banks’ exposures to carbon-related assets
    are still low.
  • Finding 7 – Banks’ policies in relation to high-carbon sectors are currently still insufficient
    to ensure alignment with the goals of the Paris Agreement.
  • Finding 8 – Banks are actively looking to scale up green financing, but they still face structural
    barriers and the variety of approaches impedes comparability.
  • Finding 9 – The majority of banks are developing low-carbon products and services across banking
    divisions, but independent verification is still limited.
  • Finding 10 – All banks surveyed are engaging with their regulators on the low-carbon transition,
    but few banks engage with other policymakers or publish their positions on relevant issues.
  • Finding 11 – Transparency levels on trade association memberships are high, but few
    banks have processes in place to ensure trade associations’ climate-related positions
    reflect their own.
  • Finding 12 – Membership levels in climate-related industry initiatives is high and collaboration with
    a range of stakeholders is widespread.
  • Finding 13 – All surveyed banks have a strategy on climate change, but there is still great variation
    in terms of ambition and detail.
  • Finding 14 – Governance structures at the surveyed banks are still insufficient to ensure
    an adequate response to the climate crisis.