KazPost

Kazakhstan News
Tuesday, Jun 18, 2024

Wall Street's Biggest Banks Failing Key Green Test in Fresh Study

Wall Street's Biggest Banks Failing Key Green Test in Fresh Study

The banks singled out in the analysis by Ceres and TPI are all members of the Net Zero Banking Alliance, a coalition that requires signatories to set interim targets for the most carbon-intense sectors on their balance sheets.
The six biggest banks on Wall Street are failing to live up to a key plank of their ESG commitments to stakeholders, according to a joint study published on Wednesday.

An analysis by Ceres and the Transition Pathways Initiative has found that JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley and Wells Fargo & Co. have yet to align their oil and gas financing goals for 2030 with a scenario that keeps global warming within the critical threshold of 1.5C.

Banks' continued support for fossil fuels, which is the primary source of planet-warming pollution, has left the industry and the executives who dominate it vulnerable to criticism from shareholders and activist groups. At the same time, the finance sector is under intense pressure from the American right as the Republican Party penalizes lenders for appearing to embrace environmental, social and good governance goals, such as reducing financed emissions.

"Our analysis highlights just how difficult it is for banks and their stakeholders to assess and compare how much progress they're making on real oil and gas emissions reductions," said Blair Bateson, director of the Ceres Company Network at Ceres. "And it goes beyond these six banks."

BloombergNEF estimates that the ratio of clean-energy lending and equity underwriting relative to fossil fuels needs to hit 4 to 1 by the end of the decade to live up to the Paris climate agreement. But by the end of 2021, that ratio for the finance industry was roughly 0.8 to 1, BloombergNEF said in February.

The banks singled out in the analysis by Ceres and TPI are all members of the Net Zero Banking Alliance, a coalition that requires signatories to set interim targets for the most carbon-intense sectors on their balance sheets. All six have set 2030 goals for the oil and gas sectors.

Ceres and TPI said the methodologies underpinning the 2030 targets of the six Wall Street banks "lack sufficient comparability and transparent disclosure" and leave "an array of material business activities outside the scope of their targets, which in turn creates loopholes for banks to continue financing high-carbon activities."

Citigroup said in a statement that its 2030 emissions reduction targets are benchmarked against the International Energy Agency's Net Zero Emissions by 2050 scenario, which is 1.5C aligned. The bank said it's committed to supporting the transition to a low-carbon economy.

Officials at JPMorgan, Bank of America, Goldman and Morgan Stanley declined to comment, while spokespeople for Wells Fargo weren't immediately available.

In the Ceres-TPI report, Bank of America was considered to demonstrate "best practice" in two areas: targeting absolute emissions instead of the intensity of emissions, and setting 2030 targets that align with warming of less than 2C. Citigroup also has an absolute emissions target, while Wells Fargo was considered to exhibit best practice for excluding carbon offsets.

JPMorgan, Goldman Sachs and Morgan Stanley didn't demonstrate best practice in any of the areas reviewed by Ceres and TPI.

To improve target-setting practices, the banks should prioritize activities with high financial and emissions exposure, better disclose the key assumptions and calculations used when setting goals, and issue annual reports to show the progress they're making in reducing emissions, Ceres and TPI said.
Newsletter

Related Articles

KazPost
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
An Ominous Shift in Warfare: Western Powers Risk War Crimes and Violate International Norms with Cluster Bomb Supply to Ukraine
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
Corruption in the European Parliament - Business as usual
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
Paris Suburb Grapples with Violence as Curfew Imposed: Saint-Denis Residents Express Dismay and Anger
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
×