World - Investors managing $11tr of assets urge banks to curtail fossil fuel financing
Institutional Investors Group on Climate Change calls on banks to back their net zero pledges with moves to halt support for fossil fuels and activities that drive deforestation
A coalition of major investors managing a combined $11tr of assets worldwide is calling on the banks to boost their 2050 climate goals by curtailing financing of activities that contribute to deforestation, land-use change, and fossil fuel expansion.
Aviva Investors, Legal & General Investment Management, Sarasin & Partners, and the Church Commissioners for England are among nearly three dozen investors which have today joined together in urging major banks to set "enhanced net zero targets" that include interim emission reduction goals, commitments to scale up green finance, and pledges to withdraw financing from recipients showing no evidence of transitioning towards a low carbon future.
The appeal, which has been convened by European membership body the Institutional Investors Group on Climate Change (IIGCC), targets 27 of the world's largest banks, including Barclays, HSBC, BNP Paribas, Groupe Credit Agricole, Citigroup, Goldman Sachs, Morgan Stanley, and Bank of America.
It comes as banks face growing pressure to match their recently adopted 2050 net zero financed emissions targets with efforts to stop financing fossil fuel companies in the short term, with today's call to action coming just weeks a major report revealed how the 60 biggest banks globally ploughed $750bn into fossil fuel companies in 2020, marking a $40bn increase from 2016 levels.