Exploring Financial Institutions' Action on Methane

The report finds that most leading financial institutions (FIs) have only begun to integrate methane into their transition plans, with significant gaps in target setting and a near-total lack of action regarding agrifood systems. While some FIs show partial action in implementation—particularly in risk strategy and policy engagement—most fail to disclose specific financed methane emissions data. The study highlights a disparity between the oil and gas sector, where some risk management exists, and the agrifood sector, which remains largely unaddressed despite its high emissions potential.

• Overall action on methane integration within transition plans is limited, with the majority of the 10 evaluated financial institutions (FIs) only just beginning to incorporate these measures.
• Target setting for methane is weak; only 3 of the 10 FIs (Bank of America, HSBC, and JP Morgan) showed partial action in at least one target indicator, and many lack disclosed baselines, sectoral coverage, or achievement strategies.
• Implementation efforts are more common but uneven, with 7 of 10 FIs showing partial action. The most prominent areas of activity are methane risk strategy and policy engagement.
• There is a stark disparity between sectors: while some action exists for oil and gas, methane emissions in agrifood systems are almost entirely unaddressed by the evaluated FIs.
• Despite the availability of cost-effective solutions, agrifood methane abatement is hindered by high upfront capital costs, and all 10 evaluated FIs scored 'limited-to-no action' across all agrifood-specific indicators.

APA

Burnett, J., Sloley, A., Zhang, T., & Zabeida, D. (2026). Exploring Financial Institutions' Action on Methane. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2026/02/Exploring-Financial-Institutions-Action-on-Methane.pdf

Chicago

Burnett, Joe, Alfred Sloley, Tinglu Zhang, and Dennis Zabeida. Exploring Financial Institutions' Action on Methane. Climate Policy Initiative, 2026. https://www.climatepolicyinitiative.org/wp-content/uploads/2026/02/Exploring-Financial-Institutions-Action-on-Methane.pdf.

Wikipedia

{{cite report |last1=Burnett |first1=Joe |last2=Sloley |first2=Alfred |last3=Zhang |first3=Tinglu |last4=Zabeida |first4=Dennis |title=Exploring Financial Institutions' Action on Methane |publisher=Climate Policy Initiative |date=February 2026 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2026/02/Exploring-Financial-Institutions-Action-on-Methane.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{burnett2026exploring, author = {Burnett, Joe and Sloley, Alfred and Zhang, Tinglu and Zabeida, Dennis}, title = {{Exploring Financial Institutions' Action on Methane}}, institution = {Climate Policy Initiative}, year = {2026}, month = feb, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2026/02/Exploring-Financial-Institutions-Action-on-Methane.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }