The U.S. banking sector’s current lending, financing, and investment practices are leaving banking institutions—and in turn, our planet and economy—dangerously vulnerable to sustainability threats from climate change, exacerbating racial, gender, and economic inequity. Calls are growing louder for banks to move more quickly on climate action as investors, policymakers, and financial regulators recognize the systemic, compounding threat that climate change poses to our financial system. Banks can help prevent the next financial crisis, and in so doing improve their competitive position and, ultimately, their financial results.
Our work in the banking sector
As the lynchpin of the global economy, banks are key to setting the pace of climate action. We work with investors, banks, and key regulators to drive investments, smart policy, and action that will benefit both financial markets and the planet.
Our approachÂ
Banks’ financing, lending, and underwriting contribute to emissions in every sector of the economy. Through our Ambition 2030 initiative, Ceres aims to decarbonize the six highest-emitting sectors of the economy, including the banking sector. We work sector-wide, calling on companies to set science-based climate goals, create robust transition action plans, and provide disclosure about how they are achieving interim targets by 2030.Â
Investor engagement
Through the Ceres Investor Network, we support investors to constructively engage banks and financial institutions on the systemic financial risks of the climate crisis and the opportunities to address them.
Corporate action
We work with financial service companies in the Ceres Company Network—and beyond—to integrate responsible investing and business practices into operational performance, business strategy, decision-making, and products and services. We also work with banks to measure and reduce their exposure to fossil fuel and high-carbon assets and to increase transition financing of Paris-aligned companies and projects.
Policy advocacy
Through the Ceres Accelerator for Sustainable Capital Markets, we engage state and federal financial regulators, and other banks and trade associations to act on climate change as a systemic economic risk, incorporate climate risks in oversight of banks and other financial firms, mandate climate disclosure, and work with agencies to accelerate the transition to a clean economy.
Explore our banking and finance reports
We equip financial institutions with cutting-edge research and reports to help them thrive in the transition to a more equitable, net zero emissions economy.
Nov 14, 2023
Sustainable Finance Opportunities: A Guide for Financial Institutions
Aug 24, 2023
Responsible Policy Engagement Benchmarking for Banks
Aug 8, 2023
Net Zero Standard for North American Banks
Latest updates
Read the latest news and insights from our work in the banking sector.
Our Progress
Ceres is working to ensure that major banks set and achieve ambitious climate targets for 2030. As a result of our advocacy, we are seeing real progress. Here are some recent highlights.
As of April 2024, Citi remains on track to set financed emissions reduction targets on all high emitting sectors, currently having set targets on six sectors. Ceres’ direct engagement with Citi and investor engagement through various shareholder resolutions has led them to improve their transition plan, disclose client alignment percentage data (showing that resp. 37% and 59% of their Energy and Power clients are demonstrating ability to decarbonize their scope ½ emissions) and commit to disclose their clean energy supply ratio next year.
In 2024, after consulting with Ceres on methodologies and targets design, Bank of America committed to reduce its financed emissions intensity for three new sectors, Aviation, Steel and Cement (resp. –37% , -27% and –32% by 2030), and to align its Maritime Shipping portfolio to the Poseidon Principles. We are pursuing our work with them on targets design and the inclusion of facilitated emissions-to-targets scope.
As of April 2024 Ceres continues to work with Wells Fargo on building a credible transition plan towards its net-zero targets and sector commitments for Oil and Gas, Power, Aviation, Automotive and Steel sectors through direct engagement, discussions and investor work.
In February 2024, Barclays announced a climate strategy for transitioning the energy sector by committing to no longer directly financing new upstream oil and gas projects or related infrastructure and restricted funding for clients reliant on expansion (more than 10% of planned capital expenditure). Additionally, Ceres worked with Barclays to guide its pilot for a just transition assessment within its Client Transition Framework to evaluate whether clients are seeking to decarbonize in line with a just transition.
In December 2023, JPMorgan committed to reduce its portfolio emissions intensity on two additional sectors, Shipping and Aluminum (resp. -33% and –25% by 2030), bringing sectors they set targets on to eight. One significant update this year was the adoption of a new “energy mix” target for scope 3, replacing their previous scope 3 energy target of –15%, the new target includes zero-carbon power generations in its scope and raises the intensity reduction percentage to –36% by 2030. Due to investor engagement through a shareholder resolution, JP also committed to disclose its clean energy supply ratio next year.
Events and webinars
Dec 6, 2023
On-demand
How Can Financial Institutions Ensure Just Transition Through Cleantech Financing and Green Jobs?
Nov 4, 2022
On-demand
Derivatives and Bank Climate Risk Report
Sep 14, 2021
On-demand
The Consequences of Physical Climate Risks for Banks
Help us transform the banking sector
Our work to accelerate the transition to a more just and sustainable economy depends on the generosity of our supporters. Your gift will help Ceres drive progress across every sector of the economy.
Donate
Never miss an alert
Sign up for the latest news and updates from Ceres.