85% of banks are still open to financing new coal, according to the State of transition in the banking sector report authored by the TPI Centre. ⛰ 0% of banks are committed to phasing out all coal activities in line with 1.5°C warming 🛢 8% of banks are committed to ending project financing of new oil and gas fields 🌳 0% of banks are committed to ending all activities that finance deforestation by 2025 ⚖ 0% of banks have explicitly committed to decarbonise in line with Just Transition principles These are some of key findings in the report, which analysed 26 multinational banks in Asia, Europe and North America, 10 US super-regional banks and two US custodian banks. Want to go deeper? Access the Report. 👓Read it. ✍Use it. 📲Share it. https://lnkd.in/eBaqbF3H For the report, the TPI Centre used its inhouse #CarbonPerformance, as well as its award winning #NetZeroBankingAssessmentFramework (NZBAF), developed in consultation with Institutional Investors Group on Climate Change (IIGCC) and Ceres, Inc. Also join us in our webinar: From words to action 📅Tuesday 29 October 2024 🕰9:00 London, 10:00 CET 17:00 Beijing, 18:00 Tokyo/Seoul, 20:00 Sydney 🔎Register: https://lnkd.in/eKA3jXGp The TPI Centre is the academic partner to the Transition Pathway Initiative (TPI) , an asset owner-led global initiative whose mission is to facilitate investors to address climate change. #StateofTransition #NetZero #TransitionFinance #CarbonPerformance #SustainableFinance #TransitionPlans #NetZeroBankingAssessmentFramework #TransitionRisks The London School of Economics and Political Science (LSE) Grantham Research Institute on Climate Change & the Environment The authors of this report are: Valentin Jahn, Algirdas Brochard, Nelson Alejandro Diaz, Ákos Hajagos-Tóth and Simon Dietz
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We provide robust, independent research which empowers investors to assess the alignment of their portfolios with the goals of the Paris Agreement and to drive real world emission reductions through our actions.
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Employees at Transition Pathway Initiative (TPI)
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David Russell
Chair of the Board, Transition Pathway Initiative
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Chandra Gopinathan, CAIA
Multi-Asset and Distressed Credit | External Manager Selection | Energy Transition Investing | Stewardship
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Global Head; Board Advisor / NED; Strategy; Sustainable Finance; Funding & Capital Markets; Innovation; ESG Regulation & Integration; ESG Ratings…
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Adam Matthews
Chief Responsible Investment Officer (CRIO) Church of England Pensions Board, Chair Global Investor Commission on Mining 2030, Member UN Secretary…
Updates
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Updated benchmarks and methodology notes for #CarbonPerformance are now available for the following seven sectors on our website! ⚡electricity utilities, 🏭cement, 🗼steel, ⚒diversified mining, ✈airlines 🛳shipping, 🛢oil and gas Access the notes on our publication page, filtered by #CarbonPerformance and Methodology: https://lnkd.in/eV2pNW_x Also check out our recent #CarbonPerformance data uploads for the oil and gas (https://lnkd.in/edMhRknZ) and electricity utilities (https://lnkd.in/ekRgJHVU) on our TPI Tool. The TPI tool is supported by over 150 asset owners and asset managers globally and is created and managed by the TPI Centre at The London School of Economics and Political Science (LSE) #TransitionFinance #ManagementQuality #TransitionRisks Grantham Research Institute on Climate Change & the Environment
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C40 Cities is a global network of mayors of the world’s leading cities that are united in action to confront the climate crisis. The Transition Pathway Initiative (TPI) tool is one of the assessment resources recommended by C40 Cities in its Knowledge Hub implementation guide: How to shift your city’s investments from fossil fuels to climate solutions (https://lnkd.in/eQ992552) The TPI tool (https://lnkd.in/d2PFbZ5U) is supported by over 150 asset owners and asset managers globally and is created and managed by the TPI Centre at The London School of Economics and Political Science (LSE) #TransitionFinance #NetZero #TransitionPlans With thanks to Matthew Stafford at C40 Cities Knowledge Hub and Lucinda (Lucy) Auden at C40 Cities
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Thank you The Very Rev Kirsten Snow Spalding at Ceres, Inc. for citing our report in your op-ed! The TPI Centre's report, State of transition in the banking sector: https://lnkd.in/eBaqbF3H Authors: Valentin Jahn Algirdas Brochard Ákos Hajagos-Tóth Nelson Alejandro Diaz Simon Dietz at The London School of Economics and Political Science (LSE), Grantham Research Institute on Climate Change & the Environment
The low carbon transition is reshaping every sector, yet U.S. super-regional banks aren't getting the attention they need. These institutions face significant climate risks, but new analysis reveals their weak public accountability and lack of disclosure are leaving investors in the dark. Check out my latest op-ed exploring how super-regional banks stack up on climate action and why investors need to push for greater transparency. [link] #NetZero #ClimateRisk #Investors #Sustainability #BankingIndustry With many thanks to Transition Pathway Initiative (TPI) for their great research.
For investors, U.S. super-regional banks are a critical blind spot in climate risk disclosure | Trellis
trellis.net
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How do banks score in managing the low-carbon transition and mitigating the impacts of climate change? Algirdas Brochard, Banking Project Lead at TPI Centre, explains the score chart below. On average, the 38 banks assessed in 2024 score only on 15% of the 72 sub-indicators that make up the #NetZeroBankingAssessmentFramework (NZBAF) and no bank scores on more than half of the sub-indicators. The award winning NZBAF evaluates banks on 72 sub-indicators organised into 10 areas. The NZBAF was developed by the TPI Centre in consultation with Institutional Investors Group on Climate Change (IIGCC) and Ceres, Inc. Want to go deeper? Access the Report. 👓Read it. ✍Use it. 📲Share it. https://lnkd.in/eBaqbF3H The TPI Centre is the academic partner to the Transition Pathway Initiative, an asset owner-led global initiative whose mission is to facilitate investors to address climate change. #StateofTransition #NetZero #TransitionFinance #CarbonPerformance #SustainableFinance Banks included in the assessments: Agricultural Bank of China, Bank of China, China Construction Bank, Industrial and Commercial Bank of China, Bank of America, CIBC, Goldman Sachs, Morgan Stanley, Societe Generale, BMO, Citi, JPMorganChase, Scotiabank, Wells Fargo, BNP Paribas, Deutsche Bank, MUFG, RBC, Sumitomo Mitsui Banking Corporation – SMBC Group, TD, UBS, Groupe Crédit Agricole, HSBC, ING, Mizuho, Barclays, Capital One, Citizens, Fifth Third Bank, Huntington National Bank, KeyBank, M&T Bank, PNC, Regions Bank, Truist, U.S. Bank, BNY, State Street
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🎯 State of transition in the banking sector report 2024 🎯 Banking Sector's Climate Transition: A Wake-Up Call for Global Financial Institutions !! The London School of Economics' Transition Pathway Initiative Centre has released a comprehensive report on the state of climate transition in the banking sector, focusing on 26 major international banks, 10 US super-regional banks, and 2 US custodian banks. This eye-opening study reveals both progress and significant gaps in the financial industry's journey towards a low-carbon economy. Key Highlights: 🎯 Only 15% of banks' activities align with climate transition goals, with no bank scoring above 50% on the assessment framework. 💼 53% of the 139 sectoral targets set by banks can be assessed using Carbon Performance methodologies, highlighting a need for improved transparency. 🌡️ Just 19% of banks' sectoral pathways align with 1.5°C or Below 2°C benchmarks in the medium term (2035), dropping to a mere 3% for 1.5°C alignment. 💰 On average, only 22% of banks' total revenues come from activities covered by sectoral decarbonisation targets. 🏦 US super-regional banks lag significantly, with none scoring on 63 out of 72 sub-indicators in the assessment framework. This report serves as a crucial wake-up call for the banking sector. While progress has been made, there's still a long way to go. #ClimateFinance #SustainableBanking #NetZero #FinancialInnovation 👏 Thanks to authors Valentin Jahn, Algirdas Brochard, Nelson Alejandro Diaz , Ákos Hajagos-Tóth, and Simon Dietz, as well as the Transition Pathway Initiative (TPI) Centre at The London School of Economics and Political Science (LSE) for this invaluable research. 👏
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Merci d'avoir partage notre rapport et l'article de presse, Isidore Gare! We are also hosting a webinar to present the assessment results and discuss the perspectives of market participants (investors, banks and policy makers). We hope you will join us. Register here: https://lnkd.in/eKA3jXGp
#Charbon #Coal #Transition #Energie Même si les banques européennes sont plus vertueuses que les américaines, certaines activités des banques sont un problème. Mais bon, parmi les groupes européens étudiés, Groupe Crédit Agricole, HSBC et ING Bank sont les plus vertueux (entre 30 et 40 % de critères positifs), alors que Société Générale est nettement à la traîne (10-20 % de critères positifs). https://lnkd.in/eZktrjjp Transition Pathway Initiative (TPI)
Climat : les grandes banques toujours prêtes à financer les mines de charbon
lesechos.fr
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Thank you for sharing our report, Nick Robins! We are also hosting a webinar to present the assessment results and discuss the perspectives of market participants (investors, banks and policy makers). We hope you will join us. Register here: https://lnkd.in/eKA3jXGp
"The overwhelming majority of banks are still in the early stages of their transition to a low-carbon economy" concludes the latest must-read #StateofTransition report on the Banking Sector from the team at the Transition Pathway Initiative (TPI) centre. The report analysed 26 multinational banks in Asia, Europe and North America, 10 US super-regional banks and two US custodian banks. The centre used its inhouse #CarbonPerformance framework, as well as its award winning #NetZeroBankingAssessmentFramework (NZBAF), developed in consultation with Institutional Investors Group on Climate Change (IIGCC) and Ceres, Inc. In spite of the progress being made, some of the eye-catching findings include: ⛰ 0% of banks are committed to phasing out all coal activities in line with 1.5°C warming 🛢 8% of banks are committed to ending project financing of new oil and gas fields 🌳 0% of banks are committed to ending all activities that finance deforestation by 2025 ⚖ 0% of banks have explicitly committed to decarbonise in line with #JustTransition principles The full analysis including recommendations for action can be found here: https://lnkd.in/eW7hH66i Valentin Jahn, Algirdas Brochard, Nelson Alejandro Diaz, Ákos Hajagos-Tóth, Simon Dietz, Antonina Scheer, Sophia Tickell, Andy Griffiths, David Carlin
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Thank you for sharing our report, Holly Li! We are also hosting a webinar to present the assessment results and discuss the perspectives of market participants (investors, banks and policy makers). We hope you will join us. Register here: https://lnkd.in/eKA3jXGp
The Transition Pathway Initiative (TPI) published the report "The State of Transition in the Banking Sector" (https://lnkd.in/eryXFfz2) assessing the climate ambitions of 38 major international and US banks, finding that "the overwhelming majority of banks are still in the early stages of their transition to a low-carbon economy." Its recommendations include: - Expand the scope of commitments, targets and policies. - Strengthen the alignment of existing sectoral targets. - Develop robust accounting methodologies for capital market activities. - Close loopholes in financing policies. - Turn sustainable finance targets into more meaningful commitments. In reality, some banks are doing more than they are given credit for. My recent report "Ahead or Behind? The State of Climate Finance in the Banking Sector" (https://lnkd.in/ekrT_KkQ) with Blair Bateson recommends a practical framework on how banks can effectively communicate their progress in sustainable finance. Also check out Blair's previous report (https://lnkd.in/eyDKEq7p) with step-by-step instructions and practitioner case studies on how to engage existing borrowers, onboard new clients, and drive revenue growth by capitalizing on sustainable finance opportunities. At Ceres, Inc., we support North American banks in managing climate-related risks and leveraging such opportunities more effectively. Our bank experts Blair Bateson and Pamela Snyder have decades of experiences working with GSIBs and US super-regional banks to enhance sustainability in the bottom line. More on our website: https://lnkd.in/ergx6hzc.
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Thank you for sharing our report, Goran Janjic! We are also hosting a webinar to present the assessment results and discuss the perspectives of market participants (investors, banks and policy makers). We hope you will join us. Register here: https://lnkd.in/eKA3jXGp
Senior Director & Sustainability Strategist | Former Advisor to Serbian Prime Minister | Driving Global Change in Public and Private Sectors
According to the Transition Pathway Initiative (TPI) report, only: 1️⃣9️⃣% of #banks’ sectoral pathways are aligned with the 1.5°C or below 2°C benchmarks in the medium term (2028-35); 0️⃣% of banks are phasing out #financing for coal or #deforestation activities; 8️⃣% plan to halt financing of new oil and gas fields. This starkly contrasts the net-zero narrative banks use in their promotions. Required Actions for Banks to be Considered Climate Leaders: 1️⃣Explicit Phase-Out Plans for High-Carbon Activities: - Banks must commit to halting all financing for coal and other fossil fuel projects in alignment with 1.5°C goals. This includes setting timelines to phase out investments in high-carbon industries and re-allocating capital to low-carbon sectors. A clear and verifiable exit strategy for financing high-carbon activities will be a benchmark for leadership. 2️⃣Set Comprehensive, Sector-Specific Decarbonization Targets: - A climate leader needs short-, medium-, and long-term targets that cover all material business activities, especially capital markets, which are currently excluded from most targets. Targets must be aligned with sectoral decarbonization pathways consistent with the Paris Agreement, addressing high-emission sectors like oil, gas, and heavy industries. 3️⃣Integrate Climate Risk into Financial Statements: - Climate leaders must transparently incorporate climate-related risks and opportunities into their core financial reporting. These disclosures must go beyond PR statements, offering stakeholders a clear view of how banks manage climate risks. 4️⃣Rebalance Portfolios to Prioritize Green Finance: - Banks should significantly increase the share of green and sustainable financing in their portfolios. This means not only issuing green bonds but also redirecting capital from carbon-intensive sectors to renewables, energy efficiency, and climate-resilient infrastructure. Transparent tracking of climate finance relative to overall financing will ensure accountability. 5️⃣Commit to the Just Transition: - A climate leader might consider integrating Just Transition principles by ensuring that climate actions consider the social and economic impacts on vulnerable communities. Banks should establish guidelines to support workers and communities affected by the green transition and ensure that their decarbonization pathways promote social equity. 6️⃣Enhanced Engagement with Clients and Sectors: - To drive systemic change, banks must engage clients across high-emission sectors, incentivizing or mandating transition plans as a condition for financing. Setting clear guidelines and transition requirements for clients will ensure that high-emission industries are aligned with the bank’s decarbonization goals. #sustainability
85% of banks are still open to financing new coal, according to analysis by the TPI Centre - Transition Pathway Initiative
transitionpathwayinitiative.org