Banking on a Low Carbon Future

Institutional investors with a combined total of nearly $2 trillion USD in assets under management are taking action at the world’s largest banks, calling for disclosure of the banks’ responses to climate change risks and opportunities.

In the wake of the Paris Agreement, the banking sector faces an array of climate-related risks and opportunities. As providers of capital, banks have an essential role to play in ensuring that we meet the Paris Agreement goal of “making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development”.

Press release

A letter to 62 of the world’s largest banks signed by investors managing assets worth (USD)

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The climate-related activities of banks are increasingly an area of focus for investors, regulators and civil society.

The Banking on a Low-Carbon Future investor letter reflects a growing desire among asset owners and asset managers for more robust climate-related disclosures by the banking sector.

Recognizing the broad array of climate-related risks and opportunities facing banks today, the initiative seeks to assess how banks are responding to climate change and the Paris Agreement.

The issuance of recommendations by the Task Force on Climate-related Financial Disclosures (TCFD) marks the beginning of a new phase in norms and expectations around disclosure in this space.

In the spirit of the TCFD recommendations, the investor letter calls for enhanced disclosure around the following four key areas:

– Strategy and implementation

– Risk assessment and management

– Low-carbon products and services

– Policy engagements and collaboration with other actors

The Banking on a Low-Carbon Future investor letter is coordinated by ShareAction and Boston Common Asset Management.

Limiting global warming to less than a 2 degrees Celsius rise requires a major shift in the way we operate financially and economically. As climate risk becomes recognised as critical to banks, investors want to know whether this risk is being managed well and at the highest levels of the organisation.

– LAUREN COMPERE, MANAGING DIRECTOR AND DIRECTOR OF SHAREHOLDER ENGAGEMENT, BOSTON COMMON ASSET MANAGEMENT

Banks engaged

Agricultural Bank of China Ltd
Australia and New Zealand Banking Group
Axis Bank Ltd
Banco Bilbao Vizcaya Argentaria SA
Banco Santander, S.A.
Bank of America
Bank of China
Bank of Communications Co., Ltd
Bank of Montreal
Barclays PLC
BNP Paribas SA
Canadian Imperial Bank of Commerce
China Citic Bank Corporation
China Construction Bank Corporation
China Merchants Bank
CICC
Citigroup Inc.
Commonwealth Bank of Australia
Credit Agricole SA
Credit Suisse Group AG
Deutsche Bank AG
DNB ASA
Fifth Third Bancorp
HSBC Holdings plc
Industrial and Commercial Bank of China Limited
Industrial Bank Co., Ltd.
ING Groep N.V
Intesa Sanpaolo SpA
Itau Unibanco Holding SA
JP Morgan Chase
Legg Mason Inc.
Lloyds Banking Group plc
Mitsubishi UFJ Financial Group, Inc.
Mizuho Financial Group, Inc
Morgan Stanley
MUFG Union Bank
National Australia Bank Limited
National Bank of Canada
Natixis SA
Nomura Holdings, Inc.
Nordea Bank AB
Northern Trust Corporation
ORIX Corporation
PNC Financial
PT Bank Rakyat
Royal Bank of Canada
Royal Bank of Scotland Group plc
Sampo Oyj
Skandinaviska Enskilda Banken (SEB)
Societe Generale SA
Standard Chartered PLC
State Bank of India
Sumitomo Mitsui Financial Group, Inc.
SunTrust Banks, Inc.
TD Bank Group
The Bank of Nova Scotia (Scotiabank)
The Goldman Sachs Group, Inc.
U.S. Bancorp
UBS AG
UniCredit SpA
Wells Fargo
Westpac Banking Corporation

Signatories

3Sisters Sustainable Management, LLC
444S Foundation
Addenda Capital Inc.
Adrian Dominican Sisters, Portfolio Advisory Board
Aegon Asset Management
AGF Investments*
Andover Newton Theological School
As You Sow
Australian Ethical Investment
Aviva Investors
Bank J. Safra Sarasin
Batirente
Boston Common Asset Management
Caisse de Prévoyance des Interprètes de Conférence (CPIC), Switzerland
Candriam Investors Group
CAP Prévoyance, Switzerland
Christopher Reynolds Foundation
CIEPP – Caisse Inter-Entreprises de Prévoyance Professionnelle, Switzerland
Clean Yield Asset Management
Cometa Pension Fund
Committee on Mission Responsibility Through Investment of the Presbyterian Church U.S.A.
Consumer Health Foundation
Dana Investment Advisors
Deaconess Community of the ELCA
Declaration of Trust of William Gee
Dignity Health
Domini Impact Investments LLC
Ecofi Investissements
EdenTree Investment Management Ltd.
Edward W. Hazen Foundation
Elo Mutual Pension Insurance Company
Environment & Sustainability strategy, Jupiter AM
Environment Agency Pension Fund
Etablissement Cantonal d’Assurance (ECA VAUD), Switzerland
Ethos Foundation, Switzerland
Everence and the Praxis Mutual Funds
First Affirmative Financial Network*
Folksam
Friends Fiduciary Corporation
Green Century Capital Management
Hermes Investment Management
Hexavest*
ICCR
JLENS
Manaaki Foundation
Maryknoll Sisters
Mennonite Education Agency
Mercy Investment Services
Midwest Coalition for Responsible Investment
Missionary Oblates – OIP Trust
Natural Investments
NEST
Nest Sammelstiftung, Switzerland
NN Investment Partners
Northwest Coalition for Responsible Investment
Nova Scotia Pension Services Corporation
OceanRock Investments Inc.
Öhman Fonder
Pax World Funds
Pensionskasse Caritas, Switzerland
Pensionskasse der Stadt Winterthur, Switzerland
Pensionskasse Unia, Switzerland
Polden-Puckham Charitable Foundation*
Prévoyance Santé Valais (PRESV), Switzerland
Prévoyance.ne, Switzerland
Progressive Investment Management
Prosperita Stiftung für die berufliche Vorsorge, Switzerland
Region VI Coalition for Responsible Investment
Reynders, McVeigh Capital Management, LLC
Royal London Asset Management
School Sisters of Notre Dame Cooperative Investment Fund
Seattle City Employees’ Retirement System
Seventh Generation Interfaith Inc.
Shareholder Association for Research and Education
Sierra Club Foundation
Sister of the Presentation of the BVM, Aberdeen SD
Sisters of Charity of Saint Elizabeth
Sisters of Providence – Mother Joseph Province
Sisters of Saint Joseph of Chestnut Hill, Philadelphia, PA
Sisters of St. Dominic/Racine Dominicans
Sisters of St. Joseph of Boston
Sisters of the Humility of Mary*
Sisters of the Precious Blood
Solaris Investment Management
Stiftung Abendrot, Switzerland
Storebrand Asset Management
Swift Foundation
The Barrow Cadbury Trust
The Church of Sweden
The Joseph Rowntree Charitable Trust
The LankellyChase Foundation
The Park Foundation
Thomson, Horstmann and Bryant, Inc.
Threshold Foundation
Trillium Asset Management
Trilogy Global Advisors, LP
United Church of Canada
UU Congregation at Shelter Rock
Veris Wealth Partners
Walden Asset Management
Wallace Global Fund
Wetherby Asset Management
Wilburforce Foundation
Zevin Asset Management

More information about the signatories can be found here.

*Signatories marked with an asterisk have elected to sign letters to a subset of the 62 banks.

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Colette St-OngeBanking on a Low Carbon Future