Tracking the Transition: Global Private Financial Institutions' Progress Toward Net Zero

The report evaluates the climate transition progress of global private financial institutions (FIs) using the Net Zero Finance Tracker (NZFT). While target adoption has expanded, the quality of these targets remains weak, particularly regarding fossil fuel phase-outs. Implementation has improved in areas like climate risk disclosure, but real-world impact is limited: financed emissions have decreased only slightly since 2019, and credit financing remains heavily skewed toward fossil fuels. Direct finance for clean and transition energy projects grew by 18% annually from 2019 to 2024, reaching nearly USD 126 billion, though this investment is concentrated in advanced economies.

• Target-setting among financial institutions has expanded but lacks quality and depth. While 80% of assets under management/ownership (AUM/O) are covered by mitigation targets, comprehensive targets aligned with 1.5°C pathways are rare. Only 14% of FIs by AUM/O have credible fossil fuel policies, and only 34% have set climate investment targets.
• Implementation progress is strongest in climate risk disclosure (79% of FIs by AUM/O), risk management (83%), and internal accountability (77%). However, support for climate resolutions declined significantly from 21% to 6% of AUM/O between 2021 and 2024, a trend driven primarily by US entities.
• Real-economy impact remains insufficient, with financed emissions showing only a slight decrease since 2019. Credit financing is heavily biased toward fossil fuels, which account for 70% of all tracked new credit finance from banks, compared to 30% for clean energy.
• Direct and indirectly enabled finance for clean and transition energy projects grew by 18% annually from 2019 to 2024, totaling nearly USD 126 billion in 2024. However, this is geographically imbalanced, as emerging markets received only 29% of global energy flows in 2024.

APA

Climate Policy Initiative (2025). Tracking the Transition: Global Private Financial Institutions' Progress Toward Net Zero. https://www.climatepolicyinitiative.org/publication/tracking-the-transition-global-private-financial-institutions-progress-toward-net-zero/

Chicago

Climate Policy Initiative. Tracking the Transition: Global Private Financial Institutions' Progress Toward Net Zero. 2025. https://www.climatepolicyinitiative.org/publication/tracking-the-transition-global-private-financial-institutions-progress-toward-net-zero/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Tracking the Transition: Global Private Financial Institutions' Progress Toward Net Zero |date=6 November 2025 |url=https://www.climatepolicyinitiative.org/publication/tracking-the-transition-global-private-financial-institutions-progress-toward-net-zero/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025tracking, author = {{Climate Policy Initiative}}, title = {{Tracking the Transition: Global Private Financial Institutions' Progress Toward Net Zero}}, institution = {Climate Policy Initiative}, year = {2025}, month = nov, url = {https://www.climatepolicyinitiative.org/publication/tracking-the-transition-global-private-financial-institutions-progress-toward-net-zero/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }