Report finds major banks retreating from climate and net-zero pledges
A report from the TPI Global Climate Transition Centre at LSE assessed 36 large banks and found many are slowing or reversing climate commitments. Sectoral target-setting has fallen since its recent peak, and no bank set new short-term targets this year. While most banks treat climate risk as a key risk, few disclose the assumptions behind how they quantify it in financial statements.
The LSE centre’s 2026 review covered 36 major banks using two assessment tools: a net-zero banking framework and a carbon performance measure. It found most institutions still early in supporting a low-carbon shift, with some progress stalled. Over three years, overall low-carbon ambition fell, and certain commitments, targets, or policies were dropped.
Sector-specific target setting has dropped sharply since its 2022 and 2024 highs. This year, no assessed bank introduced a new 2030 target, and coverage remained sparse for chemicals, food, diversified mining, and coal. While 30 of 36 called climate risk key, only seven explained the accounting assumptions and judgments behind financial-statement estimates.
Count words. First para: The(1) LSE2 centre’s3 2026 review4 covered5 36? "36" maybe word? major6 banks7 using8 two9 assessment10 tools:11 a12 net-zero13 banking14 framework15 and16 a17 carbon18 performance19 measure.20 It21 found22 most23 institutions24 still25 early26 in27 supporting28 a29 low-carbon30 shift,31 with32 some33 progress34 stalled.35 Over36 three37 years,38 overall39 low-carbon40 ambition41 fell,42 and43 certain44 commitments,45 targets,46 or47 policies48 were49 dropped.50. Second: Sector-specific1 target2 setting3 has4 dropped5 sharply6 since7 its8 20229 and10 202411 highs.12 This13 year,14 no15 assessed16 bank17 introduced18 a19 new20 203021 target,22 and23 coverage24 remained25 sparse26 for27 chemicals,28 food,29 diversified30 mining,31 and32 coal.33 Whil
... No bullets. Plain text. Need maybe two paragraphs in EXPANDED. We can include blank line between paragraphs. That's okay. Under 120 total. Need "entirely original wording, never copying source phrasing." We have phrases "climate risk", "accounting assumptions", "financial statements" maybe source phrasing? The instruction says never copying source phrasing. But these are common terms. Could rephrase to avoid exact? "accounting assumptions and judgments" appears source. We can change to "accounting premises and estimates" or "underlying bookkeeping premises and judgments". "financial statements" source. Use "reported financial figures" maybe. "climate risk" source. Use "climate-related hazards" or "climate exposure". Let's revise to avoid direct source phrases. Also "sectoral target-setting" source? We can say "industry-specific emissions goals". "short-term targets" source? Use "near-term goals". "chemicals, food, diversified mining and coal" are list, okay facts. "net-zero commitm