Investor Coalition Calls on World Banks to Measure Carbon Footprint

From IR Magazine, Published on 23 October 2015

The world’s largest banks are failing to adequately measure, disclose or manage the risks presented by global climate change and are missing opportunities in financing projects related to energy efficiency or renewables, according to a study financed by a coalition of institutional investors.

The study of the world’s 61 largest banks shows none are measuring their carbon footprints and many are failing to conduct climate-related stress tests or assess the carbon risks of their lending and underwriting. The research was carried out by Boston Common Asset Management and the coalition of 80 institutional investors managing $500bn.

The coalition, which includes Friends Fiduciary, the State of Connecticut, Walden Asset Management, Cometa Investment Funds, Ethos Foundation and others, also concludes that banks are missing out on at least $4.8tn in financing opportunities related to climate change due to a lack of a clear strategy.

A list of the top 10 banks in terms of climate management compiled by the researchers is led by Australia’s Westpac Banking Corporation and the National Australia Bank, even though Australian banks face some of the greatest sustainability risks in their lending operations.

For additional reading regarding carbon management, please refer to the following links:
Collaborating to Meet Global Sustainability Needs
The ‘Road to 100A’: Managing Your Scope 3 Emissions
Carbon Pricing: Public-Private Cooperation towards Global Sustainability