Ratios for the Energy Transition

Rising energy demand, fueled significantly by the growth of data centers, underscores a critical need for financing that accelerates the deployment of clean energy. Banks are the key to this critical financing.  

This report analyzes the approaches that four banks— JPMorganChase, Citi, RBC, BNP Paribas—are taking to assess the emissions intensity of current and future energy financing via the Energy Supply Ratio (ESR).  

Based on our review, we provide specific recommendations on how banks can incorporate key design elements into developing their ESRs. 

Why Energy Supply Ratios Matter 

An Energy Supply Ratio compares the amount of a bank's financing toward clean energy compared with fossil fuels. It’s a powerful tool for: 

• Providing decision-useful, comparable insight into bank financing 

• Unlocking new opportunities for banks and investors 

• Managing risk for banks and investors