Why it's time for banks to follow through on climate action and set absolute emission targets

The authors, representing Nordea, ABN AMRO, and Triodos banks, contend that current emission intensity targets are insufficient because they allow absolute emissions to rise if production increases. They call for European banks to establish absolute emission reduction targets and long-term strategies extending to 2050, leveraging EU policy and banking supervision to support client decarbonization through targeted engagement, fossil fuel caps, and financing for renewable energy and energy efficiency.

• Emission intensity targets are insufficient for meeting Paris Agreement goals because they measure emissions relative to output; if output grows faster than emissions decrease, absolute emissions can still increase.
• While most European banks have climate strategies reaching 2030 and commitments to net zero by 2050, there is a critical gap in detailed strategies for the two decades between 2030 and 2050.
• Banks can achieve real climate action by using their scale to grow markets for decarbonization solutions and employing specific tools such as fossil fuel caps, targeted client engagement, and increased financing for energy efficiency and renewable energy.
• Nordea and Triodos Bank have already implemented business strategies including absolute reductions, and ABN AMRO has committed to developing an absolute emissions backstop by 2030.

APA

Stegeman, S. P. A. H. H. (2026). Why it's time for banks to follow through on climate action and set absolute emission targets. World Economic Forum. https://www.weforum.org/stories/climate-action/banks-climate-action-absolute-emission-targets/

Chicago

Stegeman, Sandra Phlippen, Anja Hannerz, Hans. Why it's time for banks to follow through on climate action and set absolute emission targets. World Economic Forum, 2026. https://www.weforum.org/stories/climate-action/banks-climate-action-absolute-emission-targets/.

Wikipedia

{{cite press release |last1=Stegeman |first1=Sandra Phlippen, Anja Hannerz, Hans |title=Why it's time for banks to follow through on climate action and set absolute emission targets |publisher=World Economic Forum |date=21 July 2026 |url=https://www.weforum.org/stories/climate-action/banks-climate-action-absolute-emission-targets/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{stegeman2026why, author = {Stegeman, Sandra Phlippen, Anja Hannerz, Hans}, title = {{Why it's time for banks to follow through on climate action and set absolute emission targets}}, publisher = {World Economic Forum}, year = {2026}, month = jul, url = {https://www.weforum.org/stories/climate-action/banks-climate-action-absolute-emission-targets/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }