Introduction

Our goal is to provide high-quality data to evaluate and compare the progress banks are making in aligning their financing activities with the goals of the Paris Agreement. In 2024, the TPI Centre assessed 26 major international banks, 10 US super-regional banks, and two custodian banks on two elements:

  1. Net Zero Banking Assessment Framework (NZBAF), an investor-led framework developed in consultation with IIGCC and Ceres evaluating banks on 72 sub-indicators across ten areas, such as their decarbonisation strategy, climate governance, or exposure and emissions disclosure.
  2. Carbon Performance, an in-depth quantitative assessment of which sectors and business activities are covered by banks’ decarbonisation targets over different timeframes and their level of alignment with low carbon benchmarks (1.5°C, Below 2°C, International and National Pledges).

Average bank score across each area

Assessment Date:
11 July 2024
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Assessed banks alignment across the ten areas (% of sub-indicators aligned with)
Created with Highcharts 7.2.2Areas17.1%17.1%18.6%18.6%22.5%22.5%N/AN/A5.0%5.0%20.1%20.1%0.0%0.0%31.7%31.7%5.3%5.3%18.7%18.7%1. Net zero commitment2. Sectoral GHG Reduction Targets3. Exposure and emissions disclosure4. Historical emissions performance (placeholde…4. Historical emissions performance (placeholder indicator)5. Decarbonisation strategy6. Climate solutions7. Climate policy engagement8. Climate governance9. Just Transition10. Annual reporting0%10%20%30%40%50%60%70%80%90%100%
Market cap?
Score Range
Bubble size description
largemediumsmall
0-5%
5-15%
15-25%
25-50%
50-75%
75-100%
Net zero commitment
Score Range
19 banks
0-5%

  • Agricultural Bank of China
  • Bank of China
  • Bank of NY Mellon
  • Canadian Imperial Bank of Commerce (CIBC)
  • CapitalOne
  • China Construction Bank
  • Citizens
  • Fifth Third
  • Huntington
  • ING Bank
  • Industrial and Commercial Bank of China (ICBC)
  • JP Morgan
  • KeyCorp
  • M&T Bank
  • PNC
  • Regions
  • Société Générale
  • State Street Corp
  • Truist
Score Range
0 banks
5-15%

No banks
Score Range
12 banks
15-25%

  • Bank of America
  • Citigroup
  • Deutsche Bank
  • Goldman Sachs
  • HSBC
  • Mitsubishi UFJ FG (MUFG)
  • Mizuho
  • Morgan Stanley
  • Scotiabank
  • Toronto Dominion (TD)
  • US Bancorp
  • Wells Fargo
Score Range
7 banks
25-50%

  • BNP Paribas
  • Bank of Montreal
  • Barclays
  • Groupe Crédit Agricole
  • Royal Bank of Canada (RBC)
  • SMBC Group
  • UBS
Score Range
0 banks
50-75%

No banks
Score Range
0 banks
75-100%

No banks

Methodology

The banking sector has a critical role to play in the low-carbon transition, incentivising emissions reductions in the real economy through climate-aware financing. The TPI Centre in partnership with the Institutional Investor Group on Climate Change (IIGCC), developed an investor-led pilot framework of indicators to assess the preparedness of banks for the low-carbon transition. Our framework sets an action-focused roadmap for banks to align their financing activities with the goals of the Paris Agreement. In summer 2022, the TPI Centre published a report describing our methodology and pilot analysis of 27 banks. A new version of the Framework and assessments was published in summer 2023.
Publications

05/06/2023

The Net Zero Banking Assessment Framework has been developed by the Transition Pathway Initiative Global Climate Transition Centre (TPI Centre), in collaboration with the Institutional Investor Group on Climate Change (IIGCC) and Ceres, to assess the preparedness of banks for the low-carbon transition.

Banking Banks Methodology