The Transition to Net Zero: Banks Can Do Better

This report by the Climate Bonds Initiative evaluates the current state of net-zero disclosures among global banks, identifying significant gaps in comparability, scope, and alignment with 1.5°C pathways. Based on a stocktake of reference studies and an analysis of five Global Systemically Important Banks (G-SIBs), the report argues that current claims of net-zero alignment often lack the necessary transparency and ambition to effectively support the energy transition.

• Bank net-zero disclosures lack comparability due to inconsistent sectoral coverage, varying nomenclature for business activities, and the dispersal of information across multiple report types. For example, while some banks report 'oil and gas' and 'power generation', others use 'energy and power' and 'thermal coal mining'.
• There is a significant lack of transparency regarding the actual proportion of a bank's balance sheet covered by net-zero targets. BNP Paribas is noted as a best-practice example for disclosing that only 14.5% of its total gross credit exposure is covered by sectors with net-zero targets.
• Most bank net-zero disclosures exclude critical activities, specifically facilitated emissions and non-corporate exposures. Citigroup was the only bank in the reviewed sample to report facilitated emissions, and only for the Energy and Power sector.
• Bank sectoral targets are generally not aligned with the 1.5°C warming limit. TPI data indicates that only 3% of banks' sectoral pathways are aligned with the 1.5°C benchmark, and WRI found that average emissions targets for the auto sector are nearly triple the level required by 2030.
• Major US banks, including Citi, JPMorgan Chase, and Bank of America, continue to provide significant financing to fossil fuel expansion despite claiming 2050 net-zero alignment, which contradicts IEA guidance that no additional investment in new fossil fuel supply should occur to limit warming to 1.5°C.
• The volume of committed climate finance is insufficient compared to the needs of the transition. WRI found a median ratio of green finance to fossil fuel finance of 1.3-to-1 between 2018 and 2022, far below the 10-to-1 ratio estimated by the IEA as necessary by 2030.
• While some banks have set high-value sustainable finance goals, they often lack detailed strategies or baselines. Barclays has a USD1tn facilitation target by 2030 but lacks a baseline, while Citigroup provides a detailed baseline of USD441bn (2020–24) for its USD1tn goal but lacks forward-looking growth details.

APA

Martini, M., & Creed, A. (2025). The Transition to Net Zero: Banks Can Do Better. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/The-Transition-to-Net-Zero-Banks-Can-Do-Better_February-2025.pdf

Chicago

Martini, Mireille, and Anna Creed. The Transition to Net Zero: Banks Can Do Better. Climate Bonds Initiative, 2025. https://www.climatebonds.net/files/documents/publications/The-Transition-to-Net-Zero-Banks-Can-Do-Better_February-2025.pdf.

Wikipedia

{{cite report |last1=Martini |first1=Mireille |last2=Creed |first2=Anna |title=The Transition to Net Zero: Banks Can Do Better |publisher=Climate Bonds Initiative |date=January 2025 |url=https://www.climatebonds.net/files/documents/publications/The-Transition-to-Net-Zero-Banks-Can-Do-Better_February-2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{martini2025transition, author = {Martini, Mireille and Creed, Anna}, title = {{The Transition to Net Zero: Banks Can Do Better}}, institution = {Climate Bonds Initiative}, year = {2025}, month = jan, url = {https://www.climatebonds.net/files/documents/publications/The-Transition-to-Net-Zero-Banks-Can-Do-Better_February-2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }