Large banks are driving climate change by pumping
billions of dollars into carbon-intensive extreme fossil fuels and tropical
deforestation, with significant hidden environmental, social and governance (ESG)
risks. While banks report their operational emissions, emissions resulting from
their financing activities can be 100x larger1 and are typically undisclosed.
Climate change can have enormous financial implications, as recognized in the
Recommendations of the Task Force on Climate-Related Financial Disclosures
(TCFD) published in June 2017. “Responsible Investment” indexes such as the
MSCI ACWI Low Carbon Target Index deceptively classify banks as “low-carbon”
even as they heavily finance dangerous new carbon emissions (see below). The
Paris Climate Agreement goal of keeping temperature rise to 1.5˚C won’t be
achievable if banks and investors continue to fund and facilitate the burning
and destruction of high-carbon assets. It’s time for banks to fully disclose the
carbon footprint of their financing, decarbonize their portfolios, and
accelerate the transition towards a sustainable low-carbon future (see
Recommendations in the back).
FULL TEXT: CLICK HERE
FULL TEXT: CLICK HERE
