COP26: Big Banks and Climate Change

The global financial industry has a key role to play in tackling climate change, experts say

Leslie Norton 8 November, 2021 | 12:00AM
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The financial industry’s commitments to achieving net-zero emissions are critical to the financing of the greening of utilities and other industries in a way that was unthinkable just a couple of years ago. Last week, big banks, institutional investors, insurance companies, and regulators announced that the amount of capital controlled by institutions committed to net zero initiatives now tops $130 trillion (£96 trillion), up from $5 trillion in 2020, according to the Glasgow Financial Alliance for Net Zero.

That is about equal to the $100 trillion to $150 trillion amount required to transform the economy to net zero by 2050, the group claims. Banks, insurers, pension funds, asset managers, export-credit agencies, stock exchanges, credit rating agencies, index providers, and audit firms have committed to achieving net-zero emissions by 2050 at the latest and plan to report progress and financed emissions annually. (The signatories include Morningstar.)

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About Author

Leslie Norton  is Editorial Director of Sustainability at Morningstar