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European and Japanese Banks Leading on Climate – TPI 

None of the 26 world’s biggest banks have disclosed the total share of finance that they have directed towards climate solutions in the last year, according to the Transition Pathway Initiative (TPI). Its analysis also found that only six of the 26 banks have disclosed a commitment to end all on- and off-balance sheet activities that finance new coal capacity immediately. Further, only one of the banks’ net zero emissions commitments covers on and off-balance sheets activities, and only five banks have publicly disclosed the quantitative results of climate scenario analysis to their shareholders and clients. The TPI’;sreport also showed that European and Japanese banks are far ahead of other banks in relation to action on climate change. ING scored above average for eight out of the ten areas of the TPI’s assessment framework. In contrast, JP Morgan and Morgan Stanley, while having a much larger market capitalisation than European banks, only scored above average on two areas of the framework. The TPI’s Net Zero Banking Assessment Framework was used to assess the 26 global banks. By using their framework, the TPI was able to conclude that there has been an overall improvement in banks’ climate action from last year. 20 banks out of 26 have a net zero commitment for part of their financed emissions and 21 have set medium-term targets for their oil and gas and electric utilities lending portfolios.  

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