LSE – State of Transition in the Banking Sector, Oct 2024

This report evaluates the banking sector's progress towards a low-carbon economy. Produced by the Transition Pathway Initiative (TPI) and the London School of Economics, the 2024 assessment examines 26 major international banks, 10 U.S. regional banks, and 2 custodian banks on climate transition efforts. Findings indicate most banks are still in the early stages, with limited commitments to decarbonization. The report emphasizes that only a minority of banks align sectoral targets with the Paris Agreement's 1.5°C benchmark. Key recommendations include expanding decarbonization scope, developing robust accounting for capital markets, and closing loopholes in financing policies. These steps are crucial for strengthening banking sector contributions to global climate goals.