Charting a path to net zero in banking

January 2022

This ViewPoints synthesizes discussions with participants in the Bank Governance Leadership Network (BGLN) in the second half of 2021, including a meeting on November 18 in London, on how their institutions are approaching net-zero commitments, the implications for banks emerging from COP26, and the challenges for banks, their investors, and policymakers in advancing climate transition strategies. The following themes emerged from the discussions:

  • Banks are expected to play a central role in addressing climate risk
  • Refining transition strategies will take time
  • Effectively engaging with clients will be essential
  • Investors are looking for evidence that banks are acting on commitments
  • Banks are but one part of a complex financial system