In a significant move, major banks have voted to adjust their climate targets, abandoning a more stringent goal to align all sector financing with 1.5 degrees Celsius above pre-industrial levels by mid-century.
Instead, they have adopted a more flexible ambition to align their businesses with a well-below 2 degrees target while striving for 1.5 degrees.
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NZBA Members Vote: Over 80% of Net-Zero Banking Alliance (NZBA) members participated in the vote, with 90% of the votes cast in favor of the proposals.
Rationale for Change: Shargiil Bashir, Chief Sustainability Officer at First Abu Dhabi Bank, cited the evolving understanding of what is achievable since 2021, reflecting the current state of the real economy and advancements in policymaking and technology.
NZBA’s New Phase: The organisation is shifting its focus from primarily setting targets to helping banks implement changes through capacity-building activities, webinars, and sectoral papers.
Asset Managers’ Role in Climate Change
A new report by the Centre for Climate Crime and Climate Justice at Queen Mary University of London reveals that the “Big Three” asset managers have increased their shareholdings in the world’s largest publicly listed oil and gas companies, known as the “Dirty Dozen.” Key findings include:
Increased Shareholdings: The “Big Three” have dramatically increased their shareholdings in these companies since 2015.
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Concentration of Power: Just 25 companies control over 40% of the total shares across the group, and the number of investors required to form a controlling stake has dropped from 37 to 30 on average.
Impact on Climate Change: The report’s co-author, Professor David Whyte, argues that the concentration of power in a small number of mega-powerful asset managers drives the oil industry’s push for more oil and gas, exacerbating climate breakdown.
Industry Trends
The report’s findings come as major oil companies, including ExxonMobil, Chevron, Shell, and BP, have scaled back or abandoned previously announced net-zero pledges. Additionally, BlackRock and Vanguard have exited the Net Zero Asset Managers Initiative (NZAMI), citing pressure from Republican politicians.
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