Investor Expectations for the banking sector
The banking sector has a critical role to play in aligning the real economy with the goal of net zero emissions by 2050 and in limiting warming to 1.5 degrees. In order to do this, at a high-level, global banks need to reduce the financing of fossil fuel and other activities that generate significant levels of CO2 and increase funding of low carbon solutions to facilitate the transition towards net zero emissions by 2050.
In response to this shift required in the banking sector, IIGCC has developed a new ‘Investor Expectations for the banking sector’ in collaboration with its members. The Investor Expectations were supported by 35 investors who collectively represent $11 trillion in assets under management or advice. See here for more details on this announcement.
Consistent with the approach IIGCC has adopted for a range of other sectors, the Investor Expectations document lays out areas for action and disclosure in order for banks to align with the Paris Goals. The paper is formed of three sections: Alignment with the goals of the Paris Agreement; Governance of Climate Risk; and Disclosure. The expectations outlined are offered from the perspective of international equity and fixed income investors and, thus, are pertinent to both listed and private banks located in all geographies.
Investor practices programme
Derivatives and Hedge Funds Discussion Paper