Search Climate Insights Directory

The 2023 assessment of 40 banks reveals that while 23% showed improvements in managing E&S risks in the seafood sector, overall performance remains low with an average score of 21%. Asian banks drove most of the year-on-year progress and the issuance of new blue financial products, while European banks maintained the most robust policies. Despite growing awareness of nature-related financial risks, only 30% of assessed banks have seafood-specific policies, and many lack granular expectations for aquaculture and downstream clients.

The report finds that most of the 21 analysed European power utilities are failing to align their strategies with IEA Net Zero benchmarks. Only 43% have coal phase-out plans aligned with the 2030 EU/OECD target, and 100% are expected to operate fossil gas plants in EU/OECD countries beyond 2035. While total wind and solar capacity is projected to quadruple by 2030, this falls short of the required six-fold growth, and only 10% of companies are on track to achieve that minimum. The report highlights a lack of transparency regarding fossil gas and warns against speculative 'hydrogen-ready' claims used to justify continued fossil fuel use.

The Framework for Sustainable Finance Integrity provides a structured approach to evaluate and drive the sustainability commitments of financial actors. It establishes 'Minimum Benchmarks' that all institutions should adopt—such as aligning portfolios with the Paris Agreement and eliminating new coal finance—and 'Leadership Benchmarks' for those seeking to drive transformative change, including science-based five-year emissions targets and comprehensive TCFD alignment. The report emphasizes the need for a 'whole-of-government' approach, the integration of biodiversity and just transition into financial mandates, and the necessity of cross-sector collaboration to avoid siloed efforts that fail to meet global climate goals.

The review finds that while the GCF Readiness Programme addresses critical capacity-building needs for country-owned climate action, it suffers from a lack of a clear Theory of Change, inefficient application processes, and a heavy reliance on international consultants. Key recommendations include developing a formal Theory of Change, increasing Secretariat and regional advisor capacity, streamlining application timelines, and providing guidance in multiple languages to reduce barriers for non-Anglophone countries.