What are Large Global Banks Doing About Climate Change?

28 Pages Posted: 5 May 2023

See all articles by Daniel O. Beltran

Daniel O. Beltran

Board of Governors of the Federal Reserve System

Pinar Uysal

Board of Governors of the Federal Reserve System

Date Written: January, 2023

Abstract

We review the "climate action plans" of Global Systemically Important Banks (GSIBs) and the progress they are making toward achieving them. G-SIBs have identified the drivers of climate risk and their transmission channels to credit and other risks. Additionally, some have started to measure and model these risks. While most GSIBs have committed to fully offsetting their emissions by mid-century, they are only beginning to measure financed emissions resulting from their loans and investments, which comprise the vast majority of their emissions. G-SIBs have also committed to increase green finance and have started to do so. All told, despite some progress by large global banks to address climate change considerations, much work lies ahead to properly measure and disclose climate-related risks, and to better align financing activities with their net-zero targets.

Keywords: banks, climate finance, environmental reporting, climate change

JEL Classification: Q54, Q56, G21

Suggested Citation

Beltran, Daniel O. and Uysal, Pinar, What are Large Global Banks Doing About Climate Change? (January, 2023). International Finance Discussion Paper No. 1368, Available at SSRN: https://ssrn.com/abstract=4438782 or http://dx.doi.org/10.17016/IFDP.2023.1368

Daniel O. Beltran (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Pinar Uysal

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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