The planet is warming at a dangerous speed. Without decisive action, we will lock in a future of widespread drought and flooding. This will worsen problems of poverty, migration and conflict. To curtail this devastation, the world’s governments adopted a historic climate agreement in Paris in 2015. The target of this agreement is to limit global temperature rise to ‘well below 2°C, with an ambition for 1.5’.
To achieve this goal, it is vital that we redirect global capital flows away from high-carbon investments towards a low-carbon economy. This is why banks will be crucial. Millions of us have a stake in the banking system, as customers and as savers whose pensions are invested in banks. The way our money is used should be aligned with the low-carbon future that we all need.
ShareAction collaborates with a range of stakeholders to make sure banks align their activities with the needs of this transition. So far, we have published guidelines for investors to support them in their climate-related engagement with investee banks. We have mobilised over 100 investors worth nearly $2 trillion to write letters to 62 of the world’s largest banks, asking for better climate-related disclosures. Most recently, we surveyed the 15 largest European banks to find out how they are managing climate-related issues. We will publish a ranking based on our findings soon.