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Three in Five Lenders Not Reporting Emissions

Roughly 60% of lenders are yet to report any absolute financed emissions data, according to a report by Bloomberg Intelligence. The report analysed 54 global banks and found the majority of reporting institutions only provide emissions data for their loans to the oil and gas sector. This lack of disclosure “hampers investors’ ability” to fully understand current performance and track progress towards 2030 and 2050 targets, added the report. It also found that only 14 of the 54 banks have set interim 2030 targets for their power generation and oil and gas lending that are consistent with an International Energy Agency (IEA) Net Zero by 2050 pathway. Nearly 75% of the top 54 global lenders have committed to align their lending portfolios with net zero targets by 2050 as members of the Net Zero Banking Alliance. Bloomberg predicted that financed emissions from oil and gas and power lending from the banks with reduction targets would fall to 315 million metric tonnes in 2030 from 430 million in 2019. However, recent lending to these sectors has increased from US$150 billion in 2020 to nearly US$200 billion to date in 2022. Eric Kane, Bloomberg Intelligence’s Director of ESG Research, Americas, said: “Banks’ disclosure is yet to match their carbon ambitions. Limited emissions reporting from portfolio companies is a stated obstacle for banks to calculate financed emissions.” 

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