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The 2023 update on the 70 largest public financial institutions (PFIs) shows minimal progress in climate commitments, with only two institutions adding new net zero or Paris alignment targets. Analysis of smaller PFIs in emerging markets and developing economies indicates that climate mainstreaming is driven more by shareholder government support than by institutional capacity.

The 2023 update shows minimal progress in climate commitments among the 70 largest PFIs, with only two institutions setting new targets. However, an analysis of smaller PFIs in emerging markets and developing economies reveals that institutional size is not a primary barrier to climate ambition; instead, government prioritization and national climate goals are the strongest drivers of engagement. The report highlights that banks with general development mandates tend to be more climate-ambitious than those with narrow sectoral mandates, though successful examples exist in infrastructure and agriculture.