State of the Banking Transition 2025

The State of the Banking Transition 2025 report provides a comprehensive assessment of how the world’s largest banks are progressing toward the low-carbon transition and net-zero climate goals. Analysing 36 major global banks, the report evaluates their climate strategies, governance, targets, and disclosure practices using the Net Zero Banking Assessment Framework (NZBAF) and Carbon Performance for Banks methodologies.

The analysis reveals that many banks remain at an early stage of the transition, with decarbonisation targets covering only a limited range of sectors and activities and overall performance across climate indicators remaining weak. This raises critical questions about whether the global banking sector is moving quickly enough to align financial flows with the Paris Agreement and a net-zero emissions economy.

Part of the TPI Centre’s flagship State of Transition series, the report offers investors, policymakers, and financial institutions a clear, evidence-based view of banks’ readiness for the climate transition. It highlights gaps in climate commitments, financing of high-emitting sectors, and the scale-up of climate solutions financing - while identifying areas where stronger disclosure, governance, and sectoral targets are needed.

By providing transparent, comparable data on banks’ climate performance, the report helps investors and stakeholders understand how financial institutions are managing climate risks and opportunities and how the banking sector can better support the transition to a sustainable, low-carbon global economy.