WRI Finance Center’s Post

This is absolutely fascinating data on how banks stack up on #netzero commitments, or more importantly, what they are doing to deliver on them. Three top takeaways: - Net-zero commitments can't be taken at face value and are not all equally ambitious or credible. - Banks' targeted emissions reductions are not aligned with holding global warming to 1.5 degrees C.  - Banks still provide far too little green financing compared to fossil fuel financing. Dig into the data and explore the Tracker. There's also a great Insights article, here: https://lnkd.in/drvSG9ms

Yet another swing of the climate/ESG pendulum where we've seen some of the biggest banks change their rhetoric on climate and ESG. A few years ago, these same banks were refusing to fund certain energy projects, but with mounting pressure from different States, they've made an about face. I can only imagine they're changing their stance due to the impact to their bottom line. https://lnkd.in/eAeffJfU #esg ##banking #climatefinance

The Carbon Bankroll, co-authored by the Climate Safe Lending Network, The Outdoor Policy Outfit, and BankFWD, highlights the climate impact of cash and the potential power to transform financial supply chains. https://lnkd.in/eKy3My_A #DecarbonizingFinance #SustainableFinance

This is Important 🌎 🔥 We need to STOP GREENWASHING!! In a recent study CNN founds significant doubt on the effectiveness of banks' climate pledges, revealing that despite grand promises to prioritize sustainability and reduce financed emissions, actual changes in lending practices to high-carbon sectors like oil, gas, and transport have been minimal. This analysis, involving 300 banks, including members of the Net-Zero Banking Alliance, found no substantial shift towards increasing interest rates for high-emission companies or a greater inclination for these companies to set decarbonization targets. This highlights a crucial gap between the financial sector's stated commitments and their tangible impact on fostering a sustainable future. https://lnkd.in/dEcT4sdd At the same time UN Chief, was pretty clear about how URGENT is this: https://lnkd.in/dDKpRsE8 We need to act now !

Eco-conscious businesses keep their money in green banks. I can’t overstate the environmental damage you or your company’s money could be having if it’s with the wrong bank. A new landmark report from the European Central Bank has found that 90% of Euro-area banks are not aligned with Paris climate goals. This means they are investing and lending money fuelling a future beyond 1.5 degrees of warming. On top of this, the analysis found 70% of Euro-area banks’ stated climate commitments don’t match their corporate lending portfolio. In other words, they’re greenwashing while continuing to invest in damaging industries like fossil fuels. Not only that, their investments in less carbon-intensive technologies and renewable power capacity lag behind what Paris-aligned scenarios prescribe. When it comes to corporate sustainability, the financial institutions you use are a massive part of the puzzle. Want to take action? Check out the link in the comments. #Sustainability #Banks #ClimateAction #RouteOne

Banks have a huge part to play in addressing climate risks, and assessing their exposure to these risks is undoubtedly in their interest. But, truth be told, many are still in the dark. A majority of banks are not fully aware of the implications of climate risks, nor do they grasp the significance of investing in nature-related interventions. As my colleague Amine Benayad pointed out in this interview, it is vital to pick up the pace on changing this mindset. Financial institutions hold a pivotal position in securing a greener future, and it's high time they fully embrace this responsibility. #ClimateRisk #Sustainability #ESG 

We at TASC welcome the U.S. Department of the Treasury's intervention on integrity in voluntary carbon markets (VCM). We believe that integrity already exists in the VCM, but of course more can be done to establish the safeguards that ensure it. We very much support the 3 key integrity principles: supply integrity, demand integrity and market integrity. All too often the focus is purely on supply, but without demand and market integrity, none of this can work. As Janet Yellen rightly states; "if we do it well, we have the chance to enlist markets as a powerful ally in the fight against climate change" Let's do it 🙌 https://lnkd.in/gMCyAZqq

The ECB released a new climate and nature plan for 2024-2025. That is nothing new. But while we saw some investors hoping the new plan would also translate in the much-awaited active reshuffling of the corporate bond portfolio, we don’t remain so optimistic. The ECB claims its portfolio is Paris-compliant for this year, and we think it will use this as enough reason to postpone the active reshuffling. Read our full note here: https://lnkd.in/eN73ZviN #ecb #cspp #green #tilt #reshuffle

Carbon Markets: Game changers in advancing climate action Unsurprisingly, throughout the last couple of days experts in and around the Voluntary Carbon Market have been focussing pretty much on the latest Science Based Targets initiative (SBTi) publications and the potential role of Carbon Credits therein. Aside from the SBTi Scope 3 scenario discussions (where you will find quite opposing views and perspectives), I came across an interesting The World Bank publication. This short, hands-on report outlines the pivotal role Carbon Markets can play and sheds light on the interplay between Voluntary Carbon Markets, Article 6 mechanisms and compliance markets. So if you like to round up your weekend or start the new week with a handy report, link below ⬇️ Side note: Report contains of only nine pages 😉 ______ World Bank. High Integrity, High Impact : The World Bank Engagement Roadmap for Carbon Markets

This is the fifth edition of The World Bank (IBRD) Impact Report developed by our Treasury Investor Relations and Sustainable Finance team. They spend about six months collecting and validating data, researching, drafting content, and designing. They work with the accounting team, the results team, and climate change experts to verify climate data such as GHG emissions, and project teams to confirm and understand project results and calculations. Read about how investing in World Bank Bonds is contributing to positive social impact> https://lnkd.in/gJqbUhz3 #SustainableDevelopment #WorldBankBonds #ImpactInvesting Photo by Shawn Wynter/World Bank