The Banker’s Post

In October, Morgan Stanley quietly threw in the towel on their commitment to align their business activities with the 1.5 degree temperature limit. Morgan Stanley lay the blame at the feet of "current government policies, technology adoption and consumption habits" (yes, "consumption habits" means YOU) for their unilateral decision to scrap the *globally agreed* target, rooted in overwhelming scientific consensus. They argued that “the world is not on track to meet a 1.5°C scenario", so the bank won't bother either. What their report fails to mention is that Morgan Stanley has funded the fossil fuel sector to the tune of ✨ $183 billion ✨ since the Paris Agreement was signed, and the 1.5 degree temperature goal agreed upon, in 2015. Between 2022-2023, Morgan Stanley actually increased it's financial support for coal, oil and gas, in spite of it's public commitment to 'Net Zero'. It's outrageous that banks are emboldened enough to publicly abandon globally agreed climate goals, and to nonchalantly accept the immense risk this poses to the global economy, while continuing to reap profits from the very sector responsible for the problem. They must be held accountable. https://lnkd.in/d2w9a5nN

Banks rolling back climate pledges, refusing to step up on leadership, making excuses and resetting temperature targets to catastrophic levels (we see you Morgan Stanley) featured in The Banker by Anita Hawser . Well worth the read as we close up 2024 and get rested to redouble efforts in 2025. #climatefinance #esg Citi RBC Goldman Sachs https://lnkd.in/gyyN_5kX

When you're a scientist, being honest with yourself and your audience is absolutely critical. This means providing a full accounting of what you do and don't know about the topic of interest. If you don't know the answer you should say so. If you can't possibly know the answer, you should avoid making positive statements without adding a raft of qualifications Those who say with certainty that climate change will be dangerous for banks in the future are falling into this trap. Without evidence of an emerging problem, there's no way you can claim to know how robust the banks are likely to be. In the attached article I explore these issues and argue that our focus should be on explaining why climate risks in the banking system have historically been so finely balanced. Why have they been? Leave your favourite theory in the comments. #climaterisk https://lnkd.in/e7Yk6cCM

Since 2020, the number of companies that expect climate risk to affect their financials has increased by 3.6. Additionally, corporate investments in adaptation and resilience have grown by 200%, and is only expected to accelerate. As the impacts of climate change grow in severity, no industry will be spared from issues like operational interruptions and frequent supply chain disruptions.   In my newest article, "Leading Banks Are Shifting from Assessing Climate Risks to Helping Clients Address Them," co-authored with Amine Benayad, Andrea Castoldi, Mehdi Ifourah, Giovanni Lucini, and Annika Zawadzki, we reflect on the unique positions banks hold in addressing and combatting the climate crisis. Banks are not only lenders, but have also been assessing the impacts of climate change for years to inform their own investing and lending decisions. With this unique position, financial institutions have the opportunity to help companies address climate change and invest in adaptation.    Discover more here:  https://lnkd.in/giVZ8qpe

𝗔𝗿𝗲 𝗴𝗹𝗼𝗯𝗮𝗹 𝗯𝗮𝗻𝗸𝘀 𝗳𝗮𝗹𝗹𝗶𝗻𝗴 𝘀𝗵𝗼𝗿𝘁 𝗼𝗻 𝘁𝗵𝗲𝗶𝗿 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗽𝗿𝗼𝗺𝗶𝘀𝗲𝘀? Our new study reveals significant gaps in global banks’ transparency around their net zero targets. 🌍 The findings underscore the need for improved regulatory frameworks to drive the financial sector towards more robust climate commitments. Our Study also highlights regional disparities, comparing several countries and regions. It underscores the urgent need for global banks to improve climate disclosures and adopt science-based targets. For more information and to access the management summary, please visit: https://lnkd.in/dufTGygA Marion Ehringhaus Michael Diaz Luciano Leone

Some great insights from our Swiss Colleagues on Global Banks and Net Zero, covering some of the biggest financial institutions here in the UK and abroad. Really highlighting the challenges and issues currently facing banks on providing effective disclosures that can facilitate a meaningful comparison. Link to the report, would absolutely recommend downloading the full survey and setting some time apart to read https://lnkd.in/dufTGygAn

A study by Climate X finds 88% of top global banks unprepared for climate-related disruptions, with European institutions leading and US banks lagging behind. Find out what banks must do to meet the demand for climate-related disruptions below, with comments from Lukky A., CEO of Climate X and 🚀 Kamil Kluza, COO of Climate X. #Banks #ClimateRisk #Sustainability

💡 Most banks Are Falling Behind on Net Zero! Here is why, While banks have committed to net-zero emissions, World Resources Institute latest analysis reveals most are not on track. Many lack specific targets for high-emitting sectors like aviation and steel, crucial for a true transition. It’s time for banks to step up, align their goals with a 1.5°C future, and lead the climate fight with credible, measurable action! 💬 What can banks do better to accelerate their transition efforts? Let’s discuss in the comments! #ClimateAction #NetZero #SustainableFinance #ESG

We looked at the net-zero commitments of 25 banks to sort out what is an isn’t working.🏦🌍 Check out WRI Finance Center's Net Zero Tracker to see what practices are leading the field and where improvement is needed to meet our global climate goals: https://lnkd.in/er6pdHi8

ECB could take action against firms in bond portfolio in climate fight - https://lnkd.in/gHPZ3pF2 ECB could take action against firms in bond portfolio in climate fight - https://lnkd.in/gHPZ3pF2 ECB is still trying to control the broad marketplace, in spite of the fact that they have had no examples of success. Their green initiatives have sent all the wrong signals since the EU-ETS was formalized in 2005. Light-handed regulation with a large private sector presence.