BOSTON, Aug. 24, 2023 /PRNewswire/ — The Ceres Accelerator for Sustainable Capital Markets has released a new benchmark analysis of 13 of the largest banks operating in the United States that reveals significant inconsistencies between the banks’ public climate commitments and their direct and indirect climate lobbying practices.
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 do not match their stated support for Paris-aligned policies and regulations with 92% of banks advocating against or pushing back on Paris-aligned climate policies in the last three years. An astounding 75% of the banks analyzed lobbied both for and against Paris-aligned policies, highlighting the banks’ conflicting approach to climate policy engagement.
Every bank assessed in the analysis publicly acknowledges the reality of climate change and the need for policies to address climate risk and meet U.S. emissions reduction goals. However, banks have also been slow to take advantage of recent Paris-aligned advocacy opportunities, such as the passing of the Inflation Reduction Act. Less than half of the banks in the benchmark advocated independently in favor of specific climate policies and not a single bank publicly supported the Inflation Reduction Act prior to its passing. Though, Bank of America, Citi, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo, among others, encouraged their clients to take advantage of the implementation opportunities in the legislation.
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. 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.
Aligned with these recommendations, Ceres’ Ambition 2030 initiative focuses on six key sectors, including banking, with the aim of decarbonizing the highest emitting industries by driving greater corporate climate action. These sectors, which also include electric power, food, agriculture, oil and gas, steel, and transportation, contribute to about 80% of total U.S. emissions based on 2019 data from the Environmental Protection Agency. Responsible policy engagement consistent with climate science is an essential expectation of companies in these sectors.
Media contact: Diane May, [email protected]
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SOURCE Ceres
