Banks globally are grappling with the challenge of decarbonising their lending portfolios. Dutch lender ING has devised sector pathways for the nine most emissions-heavy sectors in its loan book – here’s how it did so.
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New research reveals many insurers are still shying away from tightening up their oil and gas policies in line with International Energy Agency recommendations. That said, they have made solid progress on coal, having generally closed the gap on the asset and liability side.
Banks account for around half of the $130trn in private capital Mark Carney said at the Cop26 summit was aligned with net zero, but there is widespread scepticism about the announcement. Senior executives from some of the biggest lenders give Capital Monitor their take.
There are calls for regulation to support the new global commitment to cutting methane levels, seen as one of the quickest ways to tackle climate change. But how it will be funded is unclear, and the absence of China, India and Russia from the pledge does not bode well.
Despite positive noises at Cop26, analysis conducted by Capital Monitor of lenders’ fossil fuel policies underlines why critics remain sceptical of the Net-Zero Banking Alliance’s ability to get signatories to align with International Energy Agency recommendations.
The lender is the first globally to release a comprehensive sustainability strategy to exit fossil fuels and the first in Europe to have its climate goals validated by the Science-Based Targets initiative. We speak to its CEO about why he believes such moves make good business sense.
The stakes are higher than ever for the upcoming UN climate talks in Glasgow to deliver results on policy promises, but the absence of key players has tempered expectations. Still, there are positive signs of progress from the world of business and finance.
Members of the European Parliament voted at the end of September to extend natural gas subsidies until 2027. Critics are slamming the decision, adding to pressure on governments to end support for fossil fuels. But even progressives acknowledge the tricky decisions involved.
Research shows that ESG strategies that focus on companies’ fixed climate scores, rather than performance metrics, risk undermining the much-needed energy transition to net zero
An Australian parliamentary inquiry into the domestic finance sector’s shift away from coal exposure underlines the government's reputation as a climate policy laggard. But it may inadvertently help boost the country’s sustainable investment industry, argue some market participants.
Science-Based Targets are a vital starting point for a company’s transition plan, but the inclusion of high-emitting coal companies on the initiative's approval list presents problems for investors forming policies around them.
The British bank is calculating a carbon budget that should lead to an overhaul of its balance sheet. Starting by tightening financing policy for the oil and gas sector, the group will introduce a series of emissions-led sector targets by 2022. A bold move, but critics argue the plans lack clarity.
Despite Seoul's commitment to reducing the country's reliance on fossil fuels, new coal-fired power projects are still raising funds. But the commodity's recent sharp price rise may focus the minds of corporate executives, bankers and government officials.
Despite coal's influence on global warming, less than half of the world’s largest asset managers have an investment policy in place for it, according to non-profit organisation Reclaim Finance.
The Energy Charter Treaty, which gives oil and gas companies a route to suing governments, is increasingly hindering climate policy reform, say campaigners. And it is not the only agreement of its type.
The multilateral finance institution is developing a renewable energy platform that it aims to list in London to lure more investment to Africa. Capital Monitor spoke to two top executives about the plans.
Capital Monitor asked 22 top insurers for their position on the recent IEA report calling for an immediate cessation to investing in and building new oil and gas projects. Only seven responded with answers but none were prepared to make firm commitments.
The Togo-based group expects its debut sustainable bond and new sustainable finance framework to help it adopt a more climate-friendly strategy and expand SDG-aligned funding across the continent, says chief risk officer Eric Odhiambo.
Institutions such as the UN are piling pressure on insurers to introduce net-zero commitments to their underwriting portfolios – including for coal and all fossil fuels – and evidence indicates this is paying off.
Highly polluting companies need trillions of dollars of funding to reduce their carbon emissions. Transition bonds are mooted as one solution, but investors are far from convinced.
Africa’s largest lender has decided against funding three of the continent’s coal-power projects and committed to releasing a climate plan aligned with the goals of the Paris Agreement. But it is still lagging behind local peers, lobbyists say.
The Finnish bank has set itself new sustainability targets. But it faces tricky decisions if it is to realise them, given its exposure to the key Nordic industries of shipping and fossil fuels.
One of the world’s most influential financiers of oil and gas remains reluctant to threaten clients with funding cuts as a means to hit net zero. The US bank argues its investment-led approach to reducing carbon intensity within sector hotspots goes far enough.